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Finance Minister Nhlanhla Nene will open an independent investigation into the affairs of the Public Investment Corporation and commissioned her board to conduct a forensic investigation of CEO Dan Matjila and Financial Director Matshepo More. almost a year of instability at the PIC, during which his board of directors disagreed on how to handle allegations of corruption against Matjila. The announcement is the first decisive action taken by the government to stabilize the PIC, which acts as badet manager for nearly R2 billion in government pension funds and other funds.
He came after a long meeting between Nene and the PIC committee earlier in the day. Nene said that more details about the investigation, including the name of his manager and his mandate, would be announced "in due course".
While the investigation will come under Nene, it is on the basis of a directive Nene must conduct the forensic investigation on Matjila and More, who was perhaps Matjila's accomplice
One or two other leaders could also be surveyed.
The terms of these investigations, as well as the question of whether Matjila and others should be suspended for their duration, are to be discussed at a council meeting on Friday. The tension is strong between the directors and no unanimity on this subject, nothing yet indicates whether Matjila will be suspended or not.
According to one point of view, there is no evidence yet to suspend it and it only faces allegations, others argue that it is normal that one individual being the subject of a forensic investigation be suspended or put on special leave.
Bantu Holomisa, leader of the UDM, who requested an order forcing Nene to open an investigation and to suspend Matjila, said that he was "surprised that the CEO was not This feels the favoritism and protection of a person who might be on the wrong side of the law once the commission is at work. "He said he would consult his lawyers on the next steps to be taken.
The Nene survey will look at the major governance issues at the PIC, as well as some questionable transactions, such as its stake in VBS Mutual Bank, in which it holds a 27% stake. in curatorship, with evidence that the directors and administrators defrauded the bank.
There is also evidence that the two PIC employees – Ernest Nesane and Paul Magula, who sat on the VBS board – received cash payments of the shareholder VBS Inc., Vele Investments, to provide additional support to the bank.
The forensic investigation on Matjila will focus on the allegations made in September 2017 by an anonymous whistleblower who claimed that Matjila had used the CIP's corporate responsibility funds to fund a project for which his alleged girlfriend, a woman named Pretty Louw, acted as agent.
He was also charged with asking Louw for a favor from a company recently funded by the PIC, when he asked the businessman and director from Kefolile Health Lawrence Mulaudzi to settle debts of R300,000 incurred by his spa and beauty treatments business
Matjila denied a relationship with Louw.
In a detailed response to counsel on the allegations, Matjila argued that the first transaction was legitimate. On the second question, he said he had contacted Mulaudzi to find out if he could help the woman by making her a supplier.
Based on an audit report of the head of the internal audit, Lufuno Nemagovhani, the integrity of the whistleblower, cleared Matjila allegations. It later appeared that he had made it on the basis of incomplete evidence
Although Nemagovhani had recommended forensic control at the time, the council of Administration had decided that it was not necessary
. he did not have the ability to establish whether there was a relationship between Matjila and Louw.
He also said that he could not establish the exact nature of Matjila's request to Mulaudzi.
Forensic investigations will consider the allegations in their entirety. .
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