Breakdown at the Public Investment Corporation (PIC) reached such a point that critical information was not transmitted by executives to an equally divided board.
The irate regulator, the Financial Sector Conduct Authority (FSCA), fired off a strongly worded letter to PIC board chair David Masondo, SA’s deputy finance minister, on Tuesday ticking the board off, particularly about the absence of a whistleblower report implicating top officials, including suspended CEO Patrick Dlamini, in alleged wrongdoing.
“Over the past few months, the FSCA has noted with concern reports and information concerning developments at the PIC, including allegations contained in whistleblower reports and steps taken or contemplated in relation to certain of the PIC’s key persons,” FSCA commissioner Unathi Kamlana wrote.
“At the most recent supervisory meeting with the PIC, held on June 29 2026, the FSCA requested that the relevant whistleblower reports be made available to it.
“It was indicated that these reports would be provided. However, notwithstanding that undertaking, the reports have, to the best of my knowledge, not been provided to the FSCA.”
Kamlana was responding to the decision by the board to suspend Dlamini on Monday in a board meeting that saw nine members vote for the suspension and two against.
In his response — which reveals the breakdown in working relations between the executive and the board — Masondo tells Kamlana the board was unaware of the FSCA’s request to see the whistleblower report.
“I note with some concern that your letter indicates this was not the authority’s first request for information relating to the whistleblower report and the associated governance process,” Masondo’s letter reads.
“Had the board, or I in my capacity as chairperson, been made aware of the authority’s earlier request following the supervisory meeting of June 29 2026, the board would have ensured that the requested information was provided without delay.
“It is therefore regrettable that the board was not afforded the opportunity to respond to the FSCA’s initial request.
“The board appreciates the FSCA’s supervisory role and shares its commitment to maintaining the highest standards of governance, accountability, and regulatory compliance within the PIC.”
Masondo reminds Kamlana of progress the board made in implementing the Mpati commission’s 2020 recommendations, which were publicly acknowledged by the minister of finance, Enoch Godongwana.
Attached to Masondo’s letter are the whistleblower report, the letter to the minister of finance informing him of Dlamini’s suspension, and the legal advice the board sought in this regard.
About half a billion rands paid to Acapulco Trade and Invest, the BEE partner at Lanseria International Airport, is at the heart of the divisions that have emerged at the PIC.
Acapulco in 2013 received a R333.2m loan from the PIC to buy a 25% stake in Lanseria.
Under the terms of the deal, Acapulco was expected to use reasonable commercial endeavours during the term to raise funds to refinance a portion of the capital loan amount.
The final repayment of the capital loan amount was to fall on the 10th anniversary of the first advance date, which came in the latter part of 2023.
Acapulco defaulted on the loan, which had ballooned to about R600m, including interest.
The PIC then moved to perfect its security by taking transfer of Acapulco’s shares in Lanseria.
The issue of the valuation of the stake then came into play. The PIC and Acapulco hired the professional services firm BDO to conduct the valuation.
Both parties rejected BDO’s draft valuation, with the firm’s mandate terminated in October 2024.
A month later, the parties appointed Crowe to conduct the valuation.
Crowe last January produced its final report, which the PIC disagreed with, alleging Crowe had inflated the value of Lanseria by about R1.7bn.
Crowe’s valuation put Acapulco’s stake in Lanseria at about R1bn, opening the door for the company to walk away with a tidy sum, even after losing its shares to the PIC over the R600m debt.
After a prolonged legal process, the PIC in October paid more than R400m to Acapulco to settle the dispute.
A PwC report commissioned by Dlamini and dated May 18 2026 found the money was not due to Acapulco.
On Wednesday the PIC appointed its CFO, Batandwa Damoyi, as acting CEO.
Two board members, Thabi Nkosi and Nosiphiwo Balfour, resigned from the board on Wednesday. Nkosi, who previously chaired Land Bank, cited “material differences” between herself and the board “on certain key governance matters”.
Business Day understands that the tensions within the board came to a head in September when Godongwana, with cabinet approval, appointed nine new members to the PIC board, “creating factions”.
“We essentially have two boards; some members seem to be reporting directly to the minister, and others seem to be reporting to the chair of the board. This has created serious divisions where people’s motives are questioned when issues are being discussed,” a source said.
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