South Africa’s PIC Appoints Mohai as Chair Amid Governance Storm
Africa · Southern
Key Facts
—The appointment. Deputy Minister Seiso Mohai is the new PIC board chair, replacing David Masondo.
—The fund. The PIC manages over R3.6 trillion ($200 billion) in public pension assets.
—The crisis. Six board members resigned after a whistleblower complaint and the CEO’s suspension.
—The regulator. The FSCA launched a formal investigation into PIC governance.
—The pattern. The Mpati Commission had warned that deputy-minister chairs weaken board governance.
South Africa’s Cabinet has appointed Deputy Minister Seiso Mohai as the new PIC board chair, placing a senior political figure at the helm of Africa’s largest asset manager just days after a governance meltdown forced out his predecessor and shattered the board.
A political chair for a $200 billion fund
Minister in the Presidency Khumbudzo Ntshavheni announced the new PIC board at a post-Cabinet briefing in Pretoria. She confirmed that Seiso Mohai, Deputy Minister in the Presidency for Planning, Monitoring and Evaluation, would assume the role of board chairperson.
The PIC publicly welcomed the appointment. It called the new board “a crucial step towards restoring corporate governance, institutional stability and public confidence” in the institution.
Mohai’s selection was not a surprise. A Semafor report earlier in the week had flagged that Finance Minister Enoch Godongwana was weighing either Mohai or Deputy Trade and Industry Minister Zuku Godlimpi for the role.
The governance implosion that cleared the way
Mohai inherits a boardroom that effectively collapsed in July 2026. The trigger was a 26-page whistleblower complaint submitted to the board and Parliament in June.
The complaint cited impropriety in a R411 million BEE financing transaction involving Lanseria Airport and an entity called Acapulco. It tied loan repayment to dividend flows that might never materialise.
On 13 July, the PIC placed CEO Patrick Dlamini on precautionary suspension. The board said this would allow “a fair, objective, and independent investigation” into the allegations.
The suspension split the board. Two non-executive directors who opposed it resigned immediately.
Four more followed within days, bringing total resignations to six in a single week.
On 24 July, board chair David Masondo—a deputy finance minister—resigned. Parliament’s Standing Committee on Finance noted the resignation and called for governance stability.
The regulator steps in
The Financial Sector Conduct Authority (FSCA) announced a formal probe into the PIC. It cited “increasing concern” over governance, leadership stability, and transparency.
The FSCA warned that recent developments could affect “the integrity and confidence in one of South Africa’s important financial institutions.” This elevated the crisis from internal politics to a systemic risk question.
Meanwhile, Finance Minister Godongwana convened a general meeting for 27 July. Acting as sole shareholder, he moved to remove nine non-executive directors and dissolve the remaining board.
Why the PIC board chair matters across markets
The PIC manages more than R3.6 trillion ($200 billion) on behalf of public-sector clients. The Government Employees Pension Fund accounts for roughly 95 percent of its asset base.
It is the largest or second-largest shareholder in many of South Africa’s biggest listed companies. These include banks, telecoms operators, mining houses, and retailers.
This gives the state significant influence over corporate boards and strategy through a single asset manager. The PIC’s governance directly affects the retirement security of millions of government employees.
The fund operates under a dual mandate. It must grow clients’ money while advancing developmental objectives including BEE and infrastructure.
That tension sits at the heart of every governance crisis the PIC has faced.
The Mpati warning and the Isibaya shadow
The Mpati Commission of Inquiry, convened in 2018–2019, found the PIC was a politically captured institution plagued by poor governance. It warned that appointing a deputy minister as chair “appears to have significantly contributed to ineffective governance.”
Parliament later amended the PIC Act to allow deputy ministers from the economic cluster to chair the board. This codified the very model the commission had criticised.
The unlisted investment portfolio, known as the Isibaya Fund, has been the epicentre of repeated scandals. In 2025, acting head Thabiso Moshikara was suspended after a businessman alleged he demanded a R3 million bribe linked to a R693 million Metrofibre deal.
The Lanseria Airport transaction that triggered the current crisis follows a familiar pattern. It involves an unlisted BEE financing structure where loan repayments depend on dividends a company is under no obligation to declare.
The BRICS and Global South read-through
The PIC is one of the largest pools of long-term capital in the Global South. Its investment choices shape infrastructure, energy, and telecoms across the continent.
Foreign investors watch PIC governance closely. Weaknesses at such a large institution can undermine confidence in South African capital markets, where the PIC is a cornerstone investor.
The choice to keep the PIC under political chairmanship—first Masondo, now Mohai—sends a signal. It suggests the state is reasserting political primacy over technocratic governance, even after the state capture era.
This sits within the broader landscape covered by our pillar on Africa: The New Scramble. Control over state-linked capital pools is increasingly central to how African governments negotiate with external powers and domestic business elites.
What to watch next
The FSCA investigation will be the first major test of the new board’s independence. Its findings could force further leadership changes or structural reforms.
Boardrooms in major JSE-listed firms must now recalibrate to a PIC chaired by a Presidency-aligned deputy minister. Voting patterns at AGMs and expectations on BEE and transformation metrics may shift.
Unions representing civil servants will scrutinise whether political interventions translate into riskier investment choices. Acting CEO Batandwa Damoyi has insisted that “governance challenges should not be confused with the management of clients’ investments.”
Connected Coverage
Frequently Asked Questions
Who is the new PIC board chair?
Seiso Mohai, Deputy Minister in the Presidency for Planning, Monitoring and Evaluation, has been appointed as the new chairperson of the Public Investment Corporation board. He replaces David Masondo, the deputy finance minister who resigned amid a governance crisis in July 2026.
Mohai’s appointment carries full Cabinet backing.
Why did the previous PIC board collapse?
A whistleblower complaint alleging impropriety in a R411 million Lanseria Airport BEE financing deal triggered the crisis. CEO Patrick Dlamini was suspended on 13 July 2026 pending an investigation.
Six non-executive directors resigned within a week, and board chair David Masondo stepped down on 24 July.
How much money does the PIC manage?
The PIC manages more than R3.6 trillion, approximately $200 billion, in assets. The Government Employees Pension Fund accounts for about 95 percent of its asset base.
The PIC is Africa’s largest asset manager and a dominant shareholder across South Africa’s formal economy.
Sources
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