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08 Nov, 2025
Renewed concerns over probable governance irregularities and conflicts of interest at the Public Investment Corporation: the PIC’s confused(ing) rhetoric regarding the Lanseria and FlySafair deals
Mr MC Ramaphosa President of the Republic of South Africa Private Bag X1000 Pretoria 0001 and Mr Songezo Zibi, MP Chairperson of the Standing Committee on Public Accounts PO Box 15 Cape Town 8000 Dear Mister President and Chairperson Zibi Renewed concerns over probable governance irregularities and conflicts of interest at the Public Investment Corporation: the PIC’s confused(ing) rhetoric regarding the Lanseria and FlySafair deals 1. I refer to my correspondence dated 29 October 2025, titled “R3.5 trillion at risk: the Public Investment Corporation’s governance collapse demands action.” In that letter, I outlined the serious risks arising from several recent and questionable transactions undertaken by the Public Investment Corporation (PIC), which place over R3.5 trillion in pensioners’ funds in jeopardy, as well as broader governance and ethical failures within the institution. 2. “The PIC’s records in respect of Harith’s (or a party related to Harith) application/request for funding to acquire all or portion of the shares in FlySafair, directly or indirectly.” This is a direct quote from the letter referred to in Paragraph 4.2, wherein the PIC is asked to preserve “records, minutes, notes, guest lists, recordings and resolutions and/or other material” relating to Harith General Partners’ acquisition of shares in FlySafair. One must ask: who is fooling whom? 3. On 5 November 2025, the PIC Board Chairperson and Deputy Minister of Finance, Dr David Masondo, launched a scathing and aggressive attack on me personally and made a weak attempt to tarnish my reputation, question my credentials, and cast aspersions on the information the UDM provided in its letter of 29 October 2025. In this regard, I wish to make the following observations: 3.1. While the PIC provides impressive financial statistics, it fails to meaningfully address the core governance concerns raised by the UDM, namely valuation manipulation, political interference, and weak board oversight. 3.2. The PIC attempts to project transparency by citing asset growth and external audits yet simultaneously hides behind claims of legal confidentiality in the Lanseria Holdings matter. This contradiction severely undermines its credibility. 3.3. Although claiming to respect Parliament, the PIC’s statement labels a Member of Parliament’s formal correspondence as “nefarious i.e. language that may be interpreted as contemptuous of democratic oversight and to which I take strong personal exception. 3.4. Furthermore, while denying wrongdoing, the PIC’s statement acknowledges that a review of the arbitration proceedings is underway, implicitly conceding that there may indeed be irregularities in the transaction. This is clearly evidenced by the correspondence referred to in Paragraph 4.14.1, which confirms that the matter remains under internal scrutiny. Yet, instead of welcoming the alert and taking proactive corrective measures, the PIC chose to attack me personally, rather than expressing gratitude for having brought this concerning deal to its attention. 3.5. Why issue the statement in the first place? The PIC went to great lengths to adopt a defensive posture, using offensive language directed at me, while at the same time conceding through its own actions that there is indeed something fishy about the Lanseria transaction. 4. To provide further context to this entire matter, I have attached two pieces of critical correspondence which demonstrate that Dr Masondo, in the name of the PIC, “doth protest too much”: 4.1. A letter from Werksmans Attorneys to Mabotja Attorneys titled: “PUBLIC INVESTMENT CORPORATION SOC LIMITED // ACAPULCO TRADE AND INVEST 164(RF) (PTY) LTD” dated 6 November 2025. 4.2. Mabotja Attorneys’ response to the above entitled.: “LANSERIA AND RELATED MATTERS” of 7 November 2025. 4.3. Werksmans Attorneys, acting on behalf of the PIC, addressed a letter to Mabotja Attorneys, who represent Acapulco Trade and Invest 164 (Pty) Ltd, regarding the aftermath of an arbitration award in favour of Acapulco, dated 17 September 2025 in the amount of R411 282 264.44. The correspondence indicates that the PIC intends to review or challenge the arbitration award and seeks to freeze the funds already deposited in Mabotja Attorneys’ trust account pending the outcome of that review. 4.4. In response, Mabotja Attorneys issued a combative and defensive reply, aimed at discrediting Werksmans Attorneys’ correspondence on behalf of the PIC and portraying Acapulco as the aggrieved party. The exchange suggests escalating tension between Acapulco and the PIC, its Chief Executive Officer (CEO), Mr Patrick Dlamini, as well as Harith General Partners and its founder, Mr Mahloele, who appears to be a central figure of contention. 4.5. The revelation that Mr Mahloele hosted a “celebratory gathering” in Bryanston to mark Mr Dlamini’s appointment as PIC CEO is particularly concerning in the broader context of potential conflicts of interest and governance integrity within the PIC. 5. Clearly, the Lanseria transaction and the PIC’s dealings in the FlySafair matter, both linked to Mr Tshepo Mahloele, appear increasingly suspect in light of the aforementioned context. The Lanseria deal has been unfolding for over twelve years, and it is now imperative that SCOPA asks even more probing questions than it did before my letter of 29 October 2025. 6. The key question for the UDM therefore remains: how many other transactions of this nature the PIC has entered into, in violation of its own governance protocols, and in the process placing at risk the R3.5 trillion in pensioners’ funds managed through the Government Employees Pension Fund (GEPF), notwithstanding Dr Masondo’s protestations to the contrary. 7. Ultimately, the PIC is a state-owned enterprise, and Parliamentary oversight is a cornerstone of ensuring that such institutions are managed ethically and transparently. Yet, the PIC appears determined to avoid public scrutiny and to continue operating in secrecy, contrary to the principles of accountability and public trust. 8. The UDM reiterates that the protection of public pension funds is a matter of national importance. Urgent intervention is required to ensure that the PIC is not used as a vehicle for political patronage and that the R3.5 trillion in assets under its management are handled with the highest standards of integrity, professionalism, and accountability. 9. We are in for a jolly period, to say the least, consider this my early Christmas gift to the public. The truth is finally coming to light. Yours sincerely Deputy Minister Bantu Holomisa, MP President of the United Democratic Movement Copied to: • Mr Enoch Godongwana, MP - Minister of Finance • Dr David Masondo, MP - Deputy Minister of Finance and Chairperson of the Board of the Public Investment Corporation • Ms Thoko Didiza, MP - Speaker of the National Assembly of South Africa • Mr Patrick Dlamini - Chief Executive Officer, Public Investment Corporation • Mr Musa Mabesa - Principal Executive Officer, Government Employees Pension Fund • Ms Tsakani Maluleke - Auditor-General of South Africa • Adv Andy Mothibi - Head of the Special Investigating Unit
