PIC Director resigns after appointment error

In a stunning governance blunder, the South African Ministry of Finance has been left red-faced after mistakenly appointing the wrong individual - Mpumelelo Maseko - as a non-executive director of the Public Investment Corporation (PIC), Africa's largest asset manager.

The mix-up forced Maseko to resign just three days after his appointment, drawing comparisons to former finance minister Des van Rooyen's infamous three-day tenure at the Treasury in December 2015.

According to sources close to the matter, Finance Minister Enoch Godongwana had intended to appoint Mpumelo Maseko, the former head of the PIC's Isibaya Fund, but the letter of appointment went instead to Mpumelelo Maseko, a former Treasury official.

When contacted on Friday, Mpumelelo Maseko confirmed his resignation but referred questions to the Ministry of Finance, saying, "The ministry is best placed to speak on it." The PIC also declined to comment, stating that board appointments were the minister's prerogative in line with the Public Investment Corporation Act of 2004.

The Ministry of Finance acknowledged receiving inquiries about the appointment but failed to provide a statement before publication.

Sources say the blunder was only discovered after the announcement had already been gazetted and publicised, with Godongwana even praising the "very good professional" he believed to be Mpumelo Maseko. The revelation has reportedly triggered efforts to have the intended Maseko's name resubmitted to cabinet for formal approval.

The confusion between the two Masekos has sparked speculation within government and financial circles that the error might not have been accidental. Some insiders believe it may have been a deliberate attempt to manipulate the appointment process and mislead the minister.

The intended appointee, Mpumelo Maseko, served at the PIC for 13 years before resigning in 2024 following disagreements with suspended Chief Investment Officer Kabelo Rikhotso. His tenure was marked by controversy over questionable transactions, including the ill-fated Daybreak Farms deal, in which the PIC invested over R2 billion in a poultry producer now in business rescue and effectively worthless.

The PIC, which manages more than R3 trillion in assets, has long been a battleground for political and economic interests seeking to influence its vast investment decisions. The latest debacle only deepens concerns about governance lapses at one of South Africa's most powerful state-owned institutions.

Meanwhile, the Sunday Times has also reported that Rikhotso was placed on precautionary suspension last week following whistleblower allegations of serious compliance breaches and irregular settlement agreements - further underscoring the turmoil within the PIC.

Whether the mistaken appointment was a genuine administrative error or a calculated act of manipulation remains unclear, but the episode has once again put the spotlight on governance failings within the Finance Ministry and the state's investment machinery.