2019-08-05_Bloomberg_Businessweek-Europe_Edition

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Editedby

PatRegnier

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existence—at least in its current form—is under

threat. A series of scandals and allegations of politi-

cal interference in investment decisions have been

exposed by a judicial commission of inquiry created

by South African President Cyril Ramaphosa. The

PIC also holds a fifth of the debt of troubled state-

owned power utility Eskom Holdings SOC Ltd.

The PIC’s management is in upheaval. The chief

executive officer of four years left in November,

and his replacement was suspended in March for

allegedly interfering with the commission’s investi-

gation. The head of publicly listed investments was

suspended over one of the deals undertaken by the

Africa’slargestfundmanagerusedtobeasuccess

story. Owned by the South African state, the Public

InvestmentCorp.runsmoneyforpublicinstitutions

includingthegovernment-workerpensionfund

coveringmorethan 1 millionpeople.It increased

itsassetsundermanagementsixfoldin 15 years,

toabout2.1trillionrand($148billion). It’s a major

player in the Johannesburg stock market and has

wielded its power to curb executive pay at compa-

nies, make or break takeovers, and drive the gov-

ernment agenda of boosting black participation in

the economy.

Now the 108-year-old asset manager’s

A Scandal Rattles

South Africa’s $150 Billion

Fund Manager

The state-owned Public Investment Corp. faces

allegations of political interference