(Ecofin Agency) - In South Africa, the Public Investment Corp (PIC) is going through tormenting times. Indeed, nine members of its administrative board just decided to resign. Their resignation occurs at a time when the PIC is under investigation for Eskom and Avo Technologies investments deemed irregular.
“These events have been unbearable to us as individuals and have undoubtedly had a negative impact on our professional integrity”, Mondli Gungubele (photo), president of the administrative board indicated in a note to the finance minister. For the signing parties, the accusations are “an attempt to bring the institution into a state of paralysis”.
The investigation that was launched following a tip from an anonymous whistleblower helped detect some failures in the management of PIC. A former member of the administrative board revealed for instance that there is a risk of political involvement because the board is headed by the number two of the finance ministry. A former employee also indicated that writers of the corp’s investment report have no control over their assessments and recommendations because the PIC hinders an independent work via harassment and constraint.
Let’s note that the scandal appears at a time government is also being investigated for corruption.