PIC Suspends CEO and Acting CIO After Forensic Probe Into R411 Million Payout

The Lanseria Airport Dispute and the R411 Million Payout

The turmoil at the state-owned asset manager centers on a long-standing dispute involving Acapulco Trade and Invest, which in 2013 secured a R333.2 million loan from the PIC to acquire a 25% stake in Lanseria International Airport. When Acapulco defaulted, the PIC moved to reclaim the shares.

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The conflict escalated during the valuation process of the airport stake. The PIC and the investor hired BDO for an initial valuation, but both parties rejected the findings and terminated the firm’s mandate in October 2024. A subsequent valuation by Crowe was similarly disputed. The PIC argued that the Crowe report, which valued the stake at roughly R1 billion, contained fundamental errors, including double counting. Despite these objections, the PIC ultimately paid R411 million to settle the matter after an arbitration process ruled in favor of Acapulco.

Findings of the PwC Forensic Investigation

Investigators found that for several critical decisions—including the termination of BDO, the appointment of Crowe, and the choice to enter into expedited arbitration—no individual took clear responsibility.

“The investigation identified that, in respect of several key decisions, including the termination of BDO, the appointment of Crowe, and the election to proceed with arbitration under expedited rules, no single individual within the PIC, including Ms Lindiwe Dlamini, Mr [Bothwell] Hlahla, or Mr [Thando] Mziba, assumed clear ownership or accountability.”

PwC forensic report, via TimesLIVE

The report also noted that former chief investment officer Kabelo Rikhotso, who left the organization in March, was notably absent from documented decision-making processes and declined to be interviewed by investigators. As reported by Newsday, the PIC is currently managing approximately R3.6 trillion in assets, primarily government employee pension funds, making the internal leadership gaps particularly significant for the country’s financial stability.

Leadership Turmoil and Regulatory Scrutiny

The suspension of Patrick Dlamini and August van Heerden follows months of infighting and the emergence of competing whistleblower reports. The PIC board has referred aspects of the Lanseria transaction to the Special Investigations Unit (SIU).

In response to the leadership vacuum, the PIC has appointed Leon Smit, the former head of fixed income investments, as the acting CIO. The organization maintains that the suspensions are precautionary and do not imply wrongdoing.

“The precautionary suspension is intended to ensure a fair, objective and independent investigation into these allegations. The suspension does not, in any way, constitute a finding nor is it a pronouncement of any wrongdoing.”

Public Investment Corporation, via Newsday

Broader Financial Context in South Africa

While the PIC grapples with governance issues, other prominent South African figures have seen significant shifts in their net worth. For instance, billionaire Zak Calisto recently saw his stake in the vehicle-tracking group Karooooo climb back above $1 billion following a record first quarter, as reported by Billionaires Africa. These market movements contrast with the PIC’s recent struggles, particularly within its Isibaya fund, which faced criticism for posting a -100% rate of return in certain unlisted investments, resulting in losses of roughly R4.5 billion.

Parliamentary oversight remains a point of contention. Democratic Alliance MP Mark Burke has called for the finance committee to intervene, noting that the committee has not met with the PIC in the past year to address the ongoing internal conflicts. As the SIU investigation proceeds, the focus remains on whether the PIC’s governance framework can be restored to protect the government pension funds under its management.