Carol Paton Writer at Large

Friday’s en masse resignation of the board of the Public Investment Corporation (PIC) — as shocking as it was — was a good thing. It opens the way for finance minister Tito Mboweni to appoint an interim board to take care of the institution until the commission of inquiry into its workings has finished its job. The inquiry will do two things that are important to the PIC’s future: clean out the people who have been involved in cronyism and corruption; and make recommendations on future governance and operational arrangements for the asset manager and the investment of government pension and social funds. As governance arrangements and some personnel at the PIC are expected to change after the commission, an interim structure is best right now. This will also give parliament a chance to finalise its legislative amendments to the PIC Act, which include changing the appointment of and representation on the board and enforcing transparency in unlisted investments. In their letter to Mbo...

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