Deputy Finance Minister to no longer chair PIC board: Tito Mboweni

Mboweni made the announcement during an introductory address at the induction of the new PIC interim board on Thursday.

The Deputy Finance Minister will no longer chair the Public Investment Corporation (PIC), Minister Tito Mboweni has announced.

Mboweni made the announcement during an introductory address at the induction of the new PIC interim board on Thursday.

The Minister said there was nothing in the law that said the Deputy Finance Minister, or any other Minister, should chair the PIC board of directors. Mboweni, instead, said he believed that this was "bad practice".

Mboweni said Cabinet recently took a decision that non-executive directors would now chair the PIC, rather than politicians.

"… Based on how boards of directors are supposed to operate, [I think to have a Deputy Minister or Minister chair the PIC] was a bad decision, but they had their reasoning. It started when they were constituting an organization and they needed to be helped along (sic). That practice should have ended at some stage."

Mboweni questioned why the Deputy Finance Minister only chaired the PIC interim board and not any other public entity.

He thanked the incoming board for accepting their appointment. He warned board members to brace themselves for criticism but urged them to ignore this and focus on corporate governance at the PIC and leave politics to politicians.

The board chairperson, deputy chairperson and audit committee were expected to be appointed during today's meeting.

"The [audit committee] immediately needs to sort out the financial reporting that is supposed to happen," he said, adding that it was important for the audit committee to "get down to work".

Mboweni said the other subcommittee could be dealt with in time. He said he wanted to use the meeting as an opportunity to thank the board members for accepting the appointment. During the meeting, the board would also be formally constituted.

The new 13-member interim board was appointed on 11 July and is made up of:

Ms. Sindi Mabaso–Koyana

Ms. Irene Charnley

Ms. Tshepiso Moahloli

Ms. Maria Ramos

Ms. Barbara Watson

Mr. Ivan Fredericks

Mr. Zola Saphetha

Mr. Bhekithemba Gamedze

Dr. Angelo David Sabelo de Bruin

Prof Bonke Dumisa

Advocate Makhubalo Ndaba

Dr. Reuel Khoza

Mr. Mugwena Maluleke

Board members Pitsi Moloto and Xolani Mkhwanazi were also reappointed.

The appointments followed the start of public hearings into allegations of impropriety at the corporation in January.

The PIC - which is wholly owned by the government - is the only investment management company in South Africa that focuses exclusively on the public sector.

(With Inputs from South African Government Press Release)