Regulations for Commission of Inquiry into PIC Drawn Up

The Presidency

Regulations pertaining to the Commission of Inquiry into the Public Investment Corporation (PIC) have been drawn up.

The Proclamation was published in Government Gazette 42076.

The Commission of Inquiry into Allegations of Impropriety Regarding the PIC was set up in October 2018 under the leadership of Justice Lex Mpati, the former President of the Supreme Court of Appeal.

Some of the issues the Commission must enquire into, make findings, report on and make recommendations include whether any alleged impropriety regarding investment decisions by the PIC contravened any legislation, PIC policy or contractual obligations and resulted in undue benefit; whether any PIC director or employee used his or her position or privileges, or confidential information for personal gain or to improperly benefit another person; whether all the investigations into the leakage of information and the source of emails containing allegations against senior executives of the PIC were justified; whether the PIC has adequate measures in place to ensure that confidential information is not disclosed and, if not, to advise on measures that should be introduced; whether there are discriminatory practices with regard to remuneration and performance awards of PIC employees and whether, considering its findings, it is necessary to make changes to the PIC Act, the PIC Memorandum of Incorporation in terms of the Companies Act of 2008, and the investment decision -making framework of the PIC, as well as the delegation of authority for the framework (if any) and, if so, to advise on the possible changes.

The regulations came into effect on the date of publication.

Meanwhile, in Proclamation 32, the presidency has amended the terms of reference of the Commission of Inquiry into Tax Administration and Governance by the South African Revenue Service.

The final report is now scheduled for 14 December 2018.

In Gazette 42086, the terms of reference for the Commission of Inquiry into State Capture, Corruption and Fraud in the Public Sector have also been amended.

The terms of reference were published in January 2018. Deputy chief justice Raymond Zondo was appointed as the chairperson.

One of the issues the Inquiry must focus on is “whether, and to what extent and by whom attempts were made through any form of inducement or for any gain of whatsoever nature to influence members of the National Executive (including Deputy Ministers), office bearers and /or functionaries employed by or office bearers of any state institution or organ of state or directors of the boards of SOE's”.

In particular, the Commission has to establish the veracity of allegations that former deputy finance minister, Mcebisi Jonas, and Vytjie Mentor were offered Cabinet positions by the Gupta family.

Other focus areas include whether president Zuma played any role in the alleged cabinet offers, whether the Guptas were informed of appointments prior to the official announcement, the nature and extent of corruption in the awarding of contracts and tenders and whether any advisers were appointed to treasury contrary to proper procedures.

The Commission will now submit its report and recommendations to the president within a period of 24 months as from 1 March 2018.

Sabinet Cape Town Office