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Edited by
Pat Regnier3
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 theAfrica’s largest fund manager used to be a success
story. Owned by the South African state, the Public
Investment Corp. runs money for public institutions
including the government-worker pension fund
covering more than 1 million people. It increased
its assets under management sixfold in 15 years,
to about 2.1 trillion rand ($148 billion). 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’sA Scandal Rattles
South Africa’s $150 Billion
Fund Manager
The state-owned Public Investment Corp. faces
allegations of political interference