A governance crisis of “enormous proportions” is unfolding at South Africa’s Public Investment Corporation (PIC), with United Democratic Movement (UDM) leader Bantu Holomisa issuing a dire warning to President Cyril Ramaphosa that the R3.5 trillion fund—which manages the pensions of millions of public servants—is under severe threat from persistent corruption and mismanagement.
In a blistering letter dated 29 October, Holomisa stated that the situation “rivals the State Capture scandal itself,” and demanded immediate action from the President and PIC chairperson Songezo Zibi. He lamented that despite the damning findings of the Mpati Commission in 2018, which exposed systemic failures, the “rot continues unchecked,” describing a culture of “continued looting, mismanagement, and administrative bungling from top to bottom.”
The Lanseria “Magic Trick”: Creating R400 Million from Thin Air
Holomisa provided a stunning example of alleged financial engineering involving the Lanseria Airport investment. He detailed how a PIC loan of R350 million to a BEE partner, Acapulco Trade and Invest, remained unpaid for over a decade, ballooning to R600 million.
“Instead of writing it off,” Holomisa wrote, “the PIC and its BEE partner conjured a revaluation,” suddenly declaring the asset worth R1 billion. In a move he described as “astonishing,” the PIC then took over the shares as security and concluded it now owed the BEE partner R400 million.
“The BEE partner miraculously walked away with a R400 million windfall,” Holomisa stated, alleging the shareholders are now “fighting over the loot.” This, he argues, transformed a failed investment into a paper profit for the debtor.
A Pattern of “Value Destruction” and Internal Chaos
The letter also raised a red flag over a proposed R7.9 billion acquisition of airline FlySafair, a price Holomisa claims is nearly double its fair market value, warning it could lead to “massive value destruction.”
Further evidence of dysfunction includes the recent suspension of Chief Investment Officer Kabelo Rikhotso amid reported “power struggles,” and a July bribery scandal involving a former head of Unlisted Investments. Holomisa also questioned the logic of injecting a further R150 million into the loss-making Daybreak Foods, a company already in business rescue.
Holomisa’s urgent plea frames the PIC not just as an institution in crisis, but as the epicentre of a potential financial catastrophe that could impact every public servant in the nation, demanding accountability before it is too late.
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