Johannesburg, South Africa – In a significant move that has drawn widespread attention, the Public Protector of South Africa has received a complaint from a whistleblower leading to an investigation into the Public Investment Corporation (PIC). The complaint raises serious allegations of misuse of public funds and abuse of power involving the PIC Chairman and Deputy Minister of Finance, David Masondo.
The complaint outlines troubling claims against Lindiwe Masina Dlamini, the Investment Head of Legal at the PIC. It alleges that Dlamini has been engaging in unnecessary legal proceedings against Black-owned businesses, purportedly to generate work for her department. Furthermore, it is claimed she has received bribes from law firms involved in these cases, raising questions about the integrity of legal practices within the PIC.
The whistleblower’s account suggests a conspiracy involving Deputy Minister David Masondo, who is alleged to be protecting Dlamini in exchange for her legal maneuvers against Black-owned companies. This strategy reportedly aims to allow the PIC to seize shares from these businesses, which are then sold at significantly reduced prices, benefitting Masondo financially.
Several companies funded under the Black Economic Empowerment (BEE) scheme have reportedly fallen victim to this alleged scheme, including Levoca 805, Metrofibre, Lanseria Airport, and Ayo Technology Solutions. The ongoing actions of Dlamini and Masondo have raised alarm bells regarding the effectiveness and integrity of the BEE initiative, which was designed to uplift historically disadvantaged groups.
The investigation is further fueled by claims that Dlamini’s actions led to substantial financial losses for the PIC and government employees. Reports indicate that over R100 million was lost in the last financial year due to her obstruction of the Levoca 805/Metrofibre deal. Allegedly, Dlamini halted the collection of interest on this investment for over a year without justifiable cause.
In a particularly alarming allegation, Dlamini is also said to have granted a legal indemnity letter worth R1.3 billion to a private company, Metrofibre, without the necessary approval from the PIC board or internal committees. Additionally, Thabiso Moshikara, the suspended acting head of investment, stands accused of soliciting a R3 million bribe in exchange for approving a R700 million loan to Levoca 805.
Moreover, Deputy Minister of Defence Bantu Holomisa has called for scrutiny of claims surrounding the current PIC CEO, Mr. Patrick Dlamini. Allegations suggest he was celebrated at a party hosted by a beneficiary of the PIC, raising ethical concerns about possible conflicts of interest.
As the Public Protector embarks on this investigation, the implications for the PIC and South Africa’s broader financial landscape remain to be seen. The PIC and Deputy Minister Masondo were unavailable for comment at the time of publication, leaving many questions unanswered as the investigation unfolds.
This situation underscores the pressing need for accountability and transparency within South Africa’s financial institutions to ensure that public funds are managed with integrity and that the interests of all South African citizens are protected.