Overview
- The Gauteng High Court declared on Tuesday, August 4, 2026, that the July 13 precautionary suspension of PIC chief executive Patrick Dlamini was unlawful and ordered the PIC and its board to pay the costs of his application.
- Judge MPN Mbongwe found the board acted outside its powers because Section 6 of the Public Investment Corporation Act gives the finance minister the appointment role and the PIC’s Delegations of Authority require ministerial approval and a Human Resources and Remuneration Committee recommendation for a CEO suspension.
- The now-dissolved board had relied on internal legal opinions, including one from Malatji & Co, that argued the board could suspend the CEO without ministerial sign-off, a position the court rejected as inconsistent with the statutory framework.
- The suspension triggered a leadership collapse with multiple non-executive resignations and Cabinet appointing a new eight-member board chaired by Seiso Mohai while several parallel investigations into PIC matters continue.
- The judgment has renewed public and political calls to insulate the PIC from political influence, raised short-term fiduciary and market risks for the R3.6-trillion fund that manages public servants’ pensions, and makes legislative or procedural reform more likely as probes proceed.