PIC defends R411m payment to Lanseria shareholder amid 'turmoil' claims

The Public Investment Corporation (PIC) has moved to defend itself against suggestions from politicians that the state asset manager is in turmoil, following a recent R411-million payment made to a shareholder of the Lanseria Airport.

Political Outrage Over Payment
The transaction has sparked political outrage, with UDM leader Bantu Holomisa writing to President Cyril Ramaphosa claiming that state pension funds are at risk.

However, Deputy Finance Minister David Masondo, who also serves as the board chairperson, asserts that the asset manager is performing well, with assets under its management now standing at R3.6 trillion.

Legal Scuffle Over Loan Book
Friday’s meeting of the Standing Committee on Finance got off to a rocky start when the PIC attempted to conceal information related to its loan book. The PIC argued that sharing the information in a public domain could impact steps against defaulters.

But Parliament’s Legal Advisor, Frank Jenkins, insisted that information about a state entity could not legallybe withheld from the House.

Arbitrated Payment Confirmed
PIC Chief Executive Officer Patrick Dlamini confirmed to the committee that, on the advice of two legal counsel, the PIC will drop an intended review of an arbitration award that has forced it to pay over R400-million to Acapulco, a shareholder of the Lanseria Airport, following a loan default.

Dlamini announced a review of the internal handling of the matter:

"We have now appointed an independent reviewer to look into where we might have dropped the ball and we will then be able to act accordingly as soon as that report is finalised."

Conflict of Interest Allegations Dismissed

Dlamini, a former board member of Lanseria Airport Holdings, also dismissed suggestions from the DA’s Mark Burke of a conflict of interest related to this transaction.

He clarified his position, stating:

"I was not a member of Acapulco, maybe if I was a member of Acapulco it would be something else. But really it had nothing to do with Lanseria. This was Acapulco and PIC."

Dlamini further likened false reports about his business and personal associations to misinformation being peddled by the United States against South Africa.