PIC Executive Head resigns, forensic investigator to be appointed on VBS Bank investment
PRETORIA - The Public Investment Corporation (PIC) this morning informed its Board of Directors that the Executive Head for Legal Counsel, Governance and Compliance, Mr Ernest Nesane, has resigned. His resignation takes immediate effect and has duly been accepted by the PIC.
Mr Nesane testified before the forensic investigation into VBS Mutual Bank earlier this week. Following his evidence, the PIC was made aware of serious allegations of impropriety against Mr Nesane, who served as one of two PIC-delegated Directors on the Board of VBS Bank, until the bank was placed under curatorship by the regulator – the South African Reserve Bank - in March this year.
The other PIC-delegated Director on the VBS Board, Mr Paul Magula, was dismissed from the PIC earlier this year. Magula was the Executive Head: Risk Management for the PIC. As company directors and PIC executives, both Nesane and Magula were entrusted with duty of care to ensure that the institution and its business practices apply the highest standards of ethics and good corporate governance.
The PIC instituted a disciplinary enquiry against Mr Magula in relation to the performance of his duties. He was subjected to a disciplinary hearing, which was presided over by an independent Senior Counsel and, after being found guilty on all charges proffered against him, Magula was summarily dismissed for poor performance.
The PIC is concerned about the developments that have come to light since the commencement of the VBS enquiry and more so that two of its former employees have been implicated of impropriety in their personal capacity.