Johannesburg – The Public Servants Association (PSA) says it is “extremely disappointed” with the former Board of the Public Investment Corporation (PIC): this after the Pretoria High Court judgement set aside the suspension of CEO Patrick Dlamini.
Soon after Dlamini’s suspension, the PIC, which oversees more than R3 trillion in assets, primarily public sector pensions, saw the resignations of six board members and the chairperson, Dr. David Masondo.
Dlamini, who denies any wrongdoing, challenged his suspension in the Gauteng High Court.
Yesterday, Tuesday, 4 August 2026, the court ruled that the Board acted beyond its legal authority, bypassing statutory requirements and ministerial approval when it suspended the PIC CEO.
The court found that the suspension was unlawful, invalid, and a threat to economic stability.
The court ordered the reinstatement of the suspended Dlamini to his PIC CEO position.
Commenting on the court matter, the PSA on Wednesday, 5 August 2026, said: “The judgement raises serious concerns about the manner in which the previous Board exercised its powers.
“The court found that the Board acted unlawfully and in disregard of its own policies when it suspended the CEO without complying with the requirements of the PIC Act and applicable delegations of authority.”
The PSA said it does not regard this as a technical or procedural matter.
“It raises fundamental questions about corporate governance, accountability, compliance, and the ability of the previous Board to properly discharge its fiduciary responsibilities,” said the union.
“It is particularly concerning that a Board entrusted with overseeing an institution managing the retirement savings and investments of millions of public servants could allegedly act without ensuring that its decisions were consistent with the law and its own governance framework.
“Boards of public entities, particularly an institution as strategically important as the PIC, cannot afford to act emotionally, recklessly or without establishing what the law and applicable policies require.
“Due diligence, proper legal advice, and adherence to governance protocols must precede major decisions.”
The PSA said it was dismayed that the court had to intervene to set aside a decision by the former Board on the basis that the Board had failed to comply with the statutory and policy requirements governing the suspension of the CEO.
“This raises questions about the quality of governance and oversight that prevailed at the PIC,” stated the PSA.
“The concerns are fuelled by broader controversies surrounding certain PIC investment decisions and transactions.
“The PIC manages substantial public-sector employees’ retirement assets.
“There can be no room for governance failures, poor oversight or decisions that expose members’ investments to unnecessary risks.”
The PSA said it has repeatedly raised concerns regarding the PIC’s investment performance, governance, and accountability.
“The recent judgement reinforces the urgent need for a fundamental restoration of confidence in the PIC,” the union noted.
“The PSA calls on the newly appointed PIC Board to learn from the failures of the previous Board and place good governance at the centre of its mandate.
“The new Board must ensure strict compliance with the PIC Act, applicable legislation, and all internal policies and delegations of authority.
“It must undertake proper due diligence and obtain appropriate legal and professional advice before taking significant decisions.”
The PSA said the new Board must restore stability and confidence amongst members of the Government Employees Pension Fund and other stakeholders.
“Investment decisions must be subjected to rigorous scrutiny and appropriate mechanisms must be in place to protect members’ retirement savings,” demanded the union.
“The Board should also hold accountable any person found to have acted unlawfully, negligently or in breach of the PIC’s governance framework.”
The PSA said it welcomes the continuation of investigations by the Financial Sector Conduct Authority into the Acapulco transaction.
