South African court reinstates PIC chief Patrick Dlamini, rules suspension unlawful
The Gauteng High Court in Pretoria has reinstated Public Investment Corporation chief executive Patrick Dlamini, ruling on Tuesday that his suspension was un...
The Gauteng High Court in Pretoria has reinstated Public Investment Corporation chief executive Patrick Dlamini, ruling on Tuesday that his suspension was unlawful and invalid. The decision clears the way for Dlamini to return after a bruising dispute at one of South Africa’s most important state asset managers.
The PIC oversees more than three trillion rand in retirement fund investments, and the court said the suspension posed a serious risk to stability across several parts of the economy. Judge Mandla Mbongwe said the board that moved against Dlamini did not have the power to remove him on its own.
Board acted without approval
According to the ruling, the PIC’s own delegation rules require ministerial and Cabinet approval before a CEO suspension can take effect. The court found none of those steps happened. The board, Mbongwe said, acted unilaterally and against its own policies.
“The suspension was, therefore, ultra vires and invalid,” the judgment said.
Dlamini had been placed on precautionary suspension last month while the board investigated whistleblower allegations of impropriety. The suspension notice was issued on 13 July 2026, but the court set it aside and declared it unlawful and of no force or effect.
Leadership turmoil at state fund manager
The move came from the now-dissolved board chaired by Deputy Finance Minister David Masondo. Finance Minister Enoch Godongwana had already told board members two weeks ago to resign or face dismissal.
The court also dismissed intervention applications from third parties, including one brought by Jabu Happy Moche, and ordered the first and second respondents to pay costs, including the costs of two counsel.
Mbongwe warned that the suspension, together with the sudden resignation of several board members, had “posed a grave threat to the stability of government investments across numerous sectors of the economy.” The judge added that any destabilisation of the PIC carried the risk of “massive economic harm” to the country.
The ruling marks the latest twist in a leadership fight that has drawn close attention because of the PIC’s scale and reach. With the suspension now void, the focus shifts to the corporation’s new board and how it handles the fallout from the court’s rebuke.
