Bantu Holomisa accuses the PIC of governance failures

United Democratic Movement (UDM) leader Bantu Holomisa has accused the Public Investment Corporation (PIC) of failing to assure the country that the state-owned asset management entity is directed and controlled ethically and effectively, despite providing impressive financial statistics. 

Holomisa recently wrote to President Cyril Ramaphosa and Scopa chairperson Songezo Zibi, warning that the R3.5 trillion managed by the PIC on behalf of the public servants was at enormous risk due to persistent corruption, mismanagement and political capture.  

He said that although the Mpati Commission, established by President Cyril Ramaphosa to investigate impropriety at the PIC, exposed systemic governance failures, particularly within the unlisted investment portfolio, the Isibaya Fund. 

Holomisa said that in 2013, Harith General Partners, a group of BEE partners, and the Government Employees Pension Fund (GEPF) invested in Lanseria Airport.

He said the BEE partner, Acapulco Trade and Invest, was fully funded by the PIC with a loan of about R350 million, which was set to be repaid from future dividends.

However, a decade later, Holomisa added, the loan remains unpaid and have ballooned to over R600 million, leaving the investment deeply underwater. 

He said instead of writing it off, the PIC and its BEE partner conjured a revaluation, declaring the asset suddenly worth R1 billion. 

“The PIC then took over the BEE partner’s shares as security and astonishingly concluded that it now owed the BEE partner R400 million. In other words, a failed investment was transformed on paper into a profit for the debtor, creating R400 million of value out of thin air. From a debt of R600 million with no repayment capacity, the BEE partner miraculously walked away with a R400 million windfall (the BEE shareholders got their share this month and they are allegedly fighting over the loot),” he said. 

In response to the allegations, PIC board chairperson David Masondo in a statement issued last week, said Holomisa’s statements were false, reckless, and intended to cause public alarm, and impugn the integrity of the PIC and its board. 

Masondo said the public must be reassured that since it was corporatised, the PIC has consistently grown the monies it invests on behalf of clients over the past 20 years - from R461 billion to R3,049 trillion by March 31, 2025. 

He said the PIC reached another milestone when these assets, for the first time, broke through the R3.5 trillion level by September 30, 2025. 

“The 2024/25 year recorded resilient growth of R356 billion in these assets, managed by the PIC (Assets Under Management (AuM)). At a rate of 13.2%, AuM growth to over R3 trillion was achieved despite net outflows of R163 billion for benefit payments to client beneficiaries," said Masondo.

In another letter issued on Sunday November 8, Holomisa said while the PIC provides impressive financial statistics, it fails to meaningfully address the core governance concerns raised by the UDM, namely valuation manipulation, political interference, and weak board oversight.

He said the PIC attempts to project transparency by citing asset growth and external audits, yet simultaneously hides behind claims of legal confidentiality in the Lanseria Holdings matter. This contradiction severely undermines its credibility, Holomisa said.

Ramaphosa's spokesperson Vincent Magwenya did not respond to a request for comment, while Zibi said he will be writing to the PIC requesting specific information regarding the allegations contained in Holomisa's letter issued last month.

In its statement, the PIC  said the “malicious claims” of an unpaid loan in Lanseria Airport due to the PIC are unfounded, as the outstanding loan principal and accrued interest were fully factored into and deducted from the final settlement amount, in terms of an arbitration award that is legally binding on the PIC.

“While a legal review on the arbitration proceedings is underway, the PIC will provide a detailed account to the Presidency and other organs of state, to show that there were no breaches in governance, instances of 'looting' or “creating R400 million of value out of thin air”, in favour of a black economic empowerment partner, as alleged.

"These claims are patently false and demonstrate the mendacity of the UDM and Mr Holomisa to mislead the Presidency, Parliament and the South African public without providing any material fact or evidence,'' read the statement.

Holomisa said by acknowledging that a review of the arbitration proceedings is underway, the PIC is implicitly conceding that there may indeed be irregularities in the transaction.

He shared a correspondence between Werksmans Attorneys (on behalf of the PIC) and Mabotja Attorneys, which represents Acapulco Trade and Invest. 

On November 6, Werksmans Attorneys addressed the letter to Mabotja attorneys that it has been instructed to demand that the disbursement  R41, 282,264,44 held in the law firm’s trust account on behalf of Acapulco Trade And Invest, be halted pending the outcome of the review proceedings.

In return, Mabotja attorneys said Acapulco Trade and Invest suspected that Werkmans just got on brief and therefore lacks critical historical context.

“Your client’s request proceeds from the mistaken premise that it enjoys a clear legal right. It does not. Our client is entitled to rely on a binding arbitral award. If your client disagreed with that outcome, it should have pursued the appropriate remedies,’’ read the letter.

Attempts to reach out to Masondo for a comment were unsuccessful.

On Friday, the PIC submitted its annual report to the Parliament Standing Committee on Finance (SCOF) and two MPs, who spoke anonymously, said the committee will engage chairperson Dr Joe Maswanganyi to schedule an urgent meeting so that Masondo can brief Parliament. 

manyane.manyane@inl.co.za