South African court orders Patrick Dlamini back at PIC after unlawful suspension ruling
Patrick Dlamini is heading back to work at the Public Investment Corporation after a high court in Pretoria ruled that his suspension was unlawful. The
Patrick Dlamini is heading back to work at the Public Investment Corporation after a high court in Pretoria ruled that his suspension was unlawful. The judgment, delivered on Tuesday, overturns the board’s decision and caps a turbulent few weeks at South Africa’s biggest state asset manager.
The scene inside the PIC turned from tension to jubilation fast. Supporters welcomed the ruling as Dlamini won the right to resume his duties as chief executive officer, a post he had been barred from after a whistleblower report triggered the standoff.
Judge finds board acted alone
Judge Mandla Mbongwe said the PIC board had no authority to suspend Dlamini the way it did. Under the PIC Act, the process must start with the human resources committee and then be approved by the finance minister in consultation with cabinet. None of those steps happened, the court found.
That legal flaw proved decisive. Mbongwe described the suspension as unlawful and rejected an application by two individuals who had sought to intervene in the case.
The disputed suspension had been tied to allegations that Dlamini tried to centralise power, bypass the board, interfere in investment decisions and invoke political protection. Those claims, contained in a controversial whistleblower report, set off a fight that quickly spread beyond the boardroom.
Political fallout widens
The clash also exposed a split between Finance Minister Enoch Godongwana and his deputy David Masondo. Godongwana backed Dlamini, while Masondo chaired the board that moved against him. In the aftermath, Masondo and the entire board resigned.
For the PIC, the ruling brings an abrupt turn after weeks of uncertainty at an institution that manages pension money for the country’s public sector workers and sits at the centre of South Africa’s financial system. The court’s finding means the board cannot sidestep the statutory process set out in the law.
The case has also drawn fresh attention to the standards expected of the PIC’s chief executive. Separate reporting this week pointed to the CEO’s statutory, financial and fiduciary duties under the PIC framework, including a responsibility to ensure investments follow approved client mandates.
Dlamini’s return now stands as the next immediate test. The board that suspended him is gone. The court has spoken. And the PIC must now settle who runs it, and on what authority.
