South Africa's $218 Billion PIC Faces Fresh Governance Crisis as Finance Minister Meets Board
Updated
Updated · Bloomberg · Jun 19
South Africa's $218 Billion PIC Faces Fresh Governance Crisis as Finance Minister Meets Board
1 articles · Updated · Bloomberg · Jun 19
Summary
Thursday's meeting between Finance Minister Enoch Godongwana and the Public Investment Corp. board brought South Africa's 3.6 trillion rand ($218 billion) state fund to the center of a new governance flare-up.
A public rift over who controls parts of the fund exposed the latest round of executive and political infighting inside Africa's biggest fund manager.
The turmoil comes as the PIC's unlisted investments continue to underperform, adding pressure on management and sharpening scrutiny of the fund's oversight.
The episode marks another bout of governance and management instability at a fund whose scale makes its internal disputes significant for South Africa's financial system.