Public Investment Corporation CEO Patrick Dlamini has been reinstated after the Gauteng High Court in Pretoria declared his July suspension unlawful, ruling that the dissolved board acted unilaterally and without required ministerial or cabinet approval amid governance turmoil at Africa’s largest asset manager.
The Gauteng High Court in Pretoria delivered a decisive ruling on Tuesday, setting aside the precautionary suspension of Public Investment Corporation (PIC) CEO Patrick Dlamini and clearing the path for his immediate return to office. The judgment marks a dramatic legal turning point in an escalating leadership crisis at the state asset manager, which oversees more than three trillion rand in retirement fund investments, as reported by eNCA.
Judge Mandla Mbongwe ruled that the precautionary suspension notice issued to Dlamini on July 13 was unlawful, invalid, and of no force or effect
, according to court documents cited by iol.co.za. The legal challenge unfolded rapidly after the now-dissolved board moved against the executive last month.
High Court Rejects Unilateral Board Action Under Judge Mandla Mbongwe
The judicial review laid bare a fundamental failure of internal governance. Dlamini had been suspended by the PIC board—headed at the time by Deputy Minister of Finance David Masondo—while investigating whistleblower allegations of impropriety, according to mg.co.za. However, the court found that the board completely bypassed statutory safeguards and internal delegation frameworks.
“None of these prerequisites were met. The Board acted unilaterally, without Ministerial approval, and in disregard of its own policies. The suspension was, therefore, ultra vires and invalid.”
Judge Mandla Mbongwe, Gauteng High Court
As EWN reported, the court detailed how the PIC Act requires the finance minister in consultation with the cabinet to appoint the chief executive. Furthermore, any suspension must be recommended by the Human Resources and Remuneration Committee, initiated by the chairperson, and approved by the minister. None of those steps occurred. The bench also rejected arguments that the institution’s whistleblower policy granted the board overriding powers, noting that whistleblower protections shield individuals from retaliation but cannot bypass governing legislation.
Broader Governance Fallout and the Dissolution of the PIC Board
The legal victory for Dlamini coincided with a wider administrative shakeup. Two weeks prior to the judgment, Finance Minister Enoch Godongwana issued notice to the PIC board to resign or face dismissal. Because the board had already been dissolved by the time the urgent application was heard, the PIC did not oppose Dlamini’s application, and the court ordered the respondents to pay legal costs on scale C, covering two counsel, as noted by iol.co.za.
“posed a grave threat to the stability of government investments across numerous sectors of the economy. The potential destabilisation of the PIC carries with it the risk of massive economic harm to the national economy, harm so profound that it is, in truth, too ghastly to contemplate.”
Judge Mandla Mbongwe, Gauteng High Court
Intersecting Controversies Over Lanseria Airport and Harith Dealings
The leadership dispute occurred against a backdrop of complex corporate transactions involving infrastructure investments and asset valuations. Under the PIC Act 23 of 2004 and the subsequent 2019 amendment, the chief executive bears explicit fiduciary duties to manage state depositor funds—most notably from the Government Employees’ Pension Fund (GEPF)—while supporting South Africa’s developmental objectives without risking retirement savings, as detailed by Daily Maverick.
Investigative reporting highlights scrutiny over Harith, an investment firm established by former PIC executive Tshepo Mahloele to manage the Pan African Infrastructure Development Fund (PAIDF). According to the Mpati Commission, Harith’s creation provided it with easy access to PIC funds and influence. The Development Bank of Southern Africa (DBSA), where Dlamini served as CEO from 2012, contributed $100-million to the first fund, helping finance Harith’s acquisition of Lanseria International Airport.
Complications deepened around Acapulco, the black economic empowerment partner holding a 25% stake in Lanseria, which was funded by a R333-million PIC loan in 2013.
Interim Leadership Adjustments at Africa’s Largest Asset Manager
While the legal battle over Dlamini’s suspension focused on procedural overreach, internal management structures also experienced shifts. Following resolutions involving the GEPF, August van Heerden ceased serving as acting chief investment officer, and Leon Smit—who joined the PIC in 2000 and previously served in acting CIO roles—was appointed as the new acting chief investment officer, according to mg.co.za. With his suspension formally overturned and the previous board dismissed, Dlamini returns to lead the institution amid ongoing scrutiny of its governance and investment portfolio.
/file/attachments/2995/2026-07-14_17-07-01_354390.jpeg "Photo: Daily Maverick")
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