David Masondo resigns as chairperson of South Africa’s Public Investment Corporation (PIC), becoming the latest senior official to step down amid a governance crisis at the country’s largest asset manager, according to Mail & Guardian. In a statement issued Thursday, Masondo warned that ongoing investigations into the Public Investment Corporation must not be “swept under the carpet,” even as the board undergoes a significant restructuring.
Masondo’s departure follows weeks of turmoil at the PIC, which manages more than R3 trillion in assets on behalf of South African public sector pension funds. His resignation comes after the precautionary suspension of chief executive Patrick Dlamini and the resignation of six non-executive directors, developments that have left the board considerably weakened and intensified scrutiny of the institution, the report said.
According to the statement, Masondo said he had decided to resign “in the interests of the Republic of South Africa, the continued stability of the PIC, and the confidence of the millions of South Africans whose savings are entrusted to this institution.” He defended the outgoing board’s record, saying it had acted collectively, in good faith and on the basis of legal advice, while pursuing governance reforms recommended following the Mpati Commission of Inquiry.
Masondo also said Finance Minister Enoch Godongwana had acknowledged that he carried out his duties “with integrity and in good faith.” Despite defending the board’s conduct, Masondo’s remarks on unresolved governance matters signalled the weight he placed on ensuring accountability continues after his exit.
He said he hoped outstanding matters the previous board had been handling , including a whistleblower report, allegations against the suspended chief executive, and a matter referred to the Special Investigating Unit (SIU) known as the “Acapulco matter” , would be thoroughly investigated and appropriately addressed rather than left unresolved. Masondo noted that some of these matters are scheduled to come before the High Court on 28 July and said the judicial process should proceed unhindered “despite the resignation of the previous Board.”
“For the sake of transparency and accountability, it is important that these issues be determined by the courts and brought to their proper legal conclusion,” Masondo said, according to the statement. He added that the board had worked to strengthen governance and institutional controls during its tenure and expressed hope that the reforms initiated under his chairpersonship would continue under new leadership.
Masondo’s resignation comes at a moment of heightened public attention on state-linked institutions, and it paves the way for the South African government to reconstitute the PIC board following months of governance turmoil. The process comes as other government-linked service announcements continue in parallel, including a recent update on Smart ID home delivery in South Africa. No timeline for appointing a new PIC chairperson had been confirmed as of Thursday’s statement.
The leadership changes at the PIC have also raised broader questions about the stability and oversight of South Africa’s public investment institutions. As the government prepares to reconstitute the board, the incoming leadership is expected to face pressure to restore confidence among stakeholders and ensure that governance procedures are strengthened. The outcome of the pending investigations could also influence the institution’s future direction and accountability framework. Masondo’s call for transparency highlights the importance of allowing legal and investigative processes to run their course, particularly as the PIC manages substantial public-sector assets and plays a significant role in South Africa’s financial system.
The PIC has faced sustained scrutiny in recent months over its governance practices, following recommendations from the Mpati Commission of Inquiry aimed at strengthening oversight of the institution. With senior leadership changes now affecting both the chairperson’s office and the chief executive’s role, attention is expected to turn to the High Court proceedings later this month and the government’s approach to rebuilding the board.
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