South Africa Plans Law to Overhaul Governance at $220 Billion Fund

South Africa plans to change legislation governing Africa’s largest money manager to end a requirement that a deputy minister serve as its chairman, potentially opening the position to a non-government appointee.

Current law requires the chairman of the Public Investment Corp. which manages about $220 billion in public pensions, to be a deputy minister in an economics-related portfolio designated by the finance minister in consultation with Cabinet.

The proposed changes will go to Cabinet in November, with the government aiming to secure parliamentary approval early next year, Finance Minister Enoch Godongwana told lawmakers on Tuesday.

Godongwana said the current arrangement creates a governance conflict because the person who chairs the PIC is also responsible for overseeing it.

Read More on the Public Investment Corp.
Africa’s Top Fund Manager Seeks Fixers After Governance Meltdown South African Court Orders CEO’s Return at $220 Billion Fund South Africa Appoints New Chairman at $220 Billion Fund Manager

The PIC has lurched from one crisis to the next over the past decade. The latest culminated in the resignation of Chairman David Masondo — who also serves as South Africa’s deputy finance minister — after a clash with Godongwana over the decision to suspend PIC CEO Patrick Dlamini.

The disagreement resulted in several directors quitting, and eventually in Masondo’s own resignation ahead of a meeting in which he was set to removed by Godongwana.

A 2020 judicial commission of inquiry chaired by retired Judge Lex Mpati found widespread governance issues at the PIC and made several recommendations, including that the fund appoint a professional and independent investment executive as chairman, which would require legislative changes.

Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple , Spotify or anywhere you listen .