Standard Bank's alleged exploitation of the Public Investment Corporation

Despite the Public Investment Corporation (PIC) facing governance and performance challenges, the country’s banks - especially Standard Bank - have been engaging in multiple significant business deals and collaborations with the state-owned asset management entity over the years, allegedly continuing to exploit the situation for their own gain.

United Democratic Movement (UDM) leader General Bantu Holomisa recently raised concerns about commercial banks. He accused them of structuring self-serving deals with the PIC that leave the pension fund, and ultimately public servants, to shoulder significant risk.

Holomisa, in a formal letter addressed to President Cyril Ramaphosa and the Chairperson of the Parliament’s Standing Committee on Public Accounts (SCOPA), Songezo Zibi, sounded the alarm over what he described as deeply troubling irregularities within the PIC. He cautioned that the scale and nature of these alleged transgressions could rival, if not surpass, the infamous state capture scandal.

Holomisa’s communication urged urgent parliamentary scrutiny and executive intervention, warning that the reported governance lapses, questionable investment decisions, and potential conflicts of interest within the PIC posed a serious threat to the integrity of the institution and the security of public funds entrusted to it.

He claimed that some banks advised the PIC on risky deals while securing their own financial positions in the same transactions, suggesting these banks should be held accountable. He said these banks hide behind the so-called loopholes, a term for a set of internal policies and procedures that restrict the flow of confidential information between departments or teams within the same firm.

Holomisa further stated there is one bank that has been more prominent in deals involving the PIC and the Government Employees Pension Fund (GEPF), both as an advisor and a participant in the more secure portion.

When asked to identify the financial institution involved, Holomisa unequivocally confirmed that the bank in question is Standard Bank. He emphasised that the allegations and concerns he raised in his correspondence specifically relate to the bank’s dealings with the PIC.

Holomisa further suggested that Standard Bank’s conduct warrants closer investigation, given its prominent role in managing state-related financial transactions and its history of extensive engagements with the PIC, despite the persistent governance controversies surrounding the state-owned asset manager.

According to media reports, Standard Bank has been involved in multiple deals and has a long-standing investment relationship with the PIC.

In 2004, Standard Bank contracted with PIC Solutions for credit risk consulting services, though this appears to be a separate, private company from the state-owned entity. However, it is not clear whether this deal still exists or not.

In 2019, it was revealed during the Mpati Commission of Inquiry that the PIC (on behalf of its main client, GEPF) agreed to acquire a 25% stake in SA Home Loans, a company 50% owned by Standard Bank at the time. The PIC also undertook to provide a substantial financial facility of R9 billion to SA Home Loan, using GEPF money.

The Mpati Commission was established by Ramaphosa in October 2018 to investigate allegations of corruption, maladministration, and improper investment decisions at the PIC. Specifically, it was created to examine whether PIC directors or employees abused their positions for personal gain, investigate issues with governance and investment decisions, and review the protection of whistleblowers.

Among other deals last year, the Competition Commission approved the GEPF to increase its shareholding in SA Home Loans. The approval, granted in July 2024, was for the acquisition of an additional 25% stake, which increased the GEPF’s total shareholding from 25% to 50%. From December 2024 (and continuing in 2025), Standard Bank and the PIC have also been involved in a joint investment with Old Mutual in Curro’s Meridian group of schools to further access to affordable education.

Standard Bank, as a corporate and investment bank, also acts in a transactional capacity, such as arranging bond issuances and facilitating financing for various entities, in which PIC is participating as an investor or co-founder.

Asked for a comment, Standard Bank spokesperson Ross Linstrom did not respond to specific questions, saying the bank operates under a comprehensive Conflict of Interest Management Policy, aligned with the Financial Advisory and Intermediary Services (FAIS) Act and the JSE Debt Listings Requirements.

Linstrom said these safeguards are designed to uphold the integrity of “our” operations and protect client interests.

“Standard Bank applies rigorous due diligence and governance protocols when advising clients on transactions. Standard Bank is committed to promoting transparency in all its dealings. The bank operates within a robust legal and regulatory framework, including compliance with legislation such as the Banks Act, the Financial Sector Regulation Act, and the Protection of Personal Information Act (POPIA). These laws govern how financial institutions manage client information, conduct due diligence, and uphold fiduciary responsibilities,” he said.

“While client confidentiality remains paramount, Standard Bank engages constructively with regulators, oversight bodies, and other appropriate channels to support transparency, accountability, and the integrity of the financial system. We remain committed to restoring and maintaining investor confidence through ethical conduct and responsible financial stewardship,” added Linstrom.

The PIC also declined to answer specific questions and instead sent a statement announcing that it is preparing detailed submissions to the Presidency, Parliament committees and other government agencies.

* Go to the full story on IOL.  https://iol.co.za/news/south-africa/2025-11-06-standard-banks-alleged-exploitation-of-the-public-investment-corporation/