Chaiperson of the Standing Committee on Finance, Dr Joe Maswanganyi, says they will respect the democratic principle of separation of powers regarding the debacle at the Public Investment Corporation (PIC).

Deputy Finance Minister Dr David Masondo resigned from the country’s largest asset manager last week, as well as other board members.

The CEO, Patrick Dlamini, is on precautionary suspension.

Finance Minister Enoch Godongwana says he will, in consultation with the Cabinet, appoint a new board. 

Dr. Maswanganyi says they are obliged in terms of the rule of the separation of powers to allow Godongwana to excercise his powers by appointing a new board.

He says Godongwana will account to the committee after the completion of the appointment of the new board.

In a statement, Godongwana says he will provide further detailed information to the public and all stakeholders once consultations are completed and a new board is appointed, adding that the PIC plays a vital role in the economy and any instability in the institution poses systemic risk to the economy. 

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