PIC’s head of compliance quits over VBS Bank scandal



July 13, 2018 6:51 pm Published by Leave your thoughts

CAPE TOWN – The Public Investment Corporation (PIC) on Friday said its head of legal counsel, governance and compliance Ernest Nesana had resigned with immediate effect after giving evidence before the investigation into VBS Mutual Bank earlier in the week.

“His resignation takes immediate effect and has been duly accepted by the PIC,” said Deon Botha, head of corporate affairs at Africa’s biggest investment manager.

Botha said the PIC was made aware of serious allegations of impropriety against Nesane following his testimony before the inquiry.

He served as one of two directors delegated to the troubled bank by the PIC before it was placed under curatorship by the South African Reserve Bank in March.

The other, Paul Magula, was dismissed by the PIC earlier this year after he was subjected to a disciplinary inquiry and found guilty of all charges.

Botha said the PIC was concerned that two senior members who it had entrusted to ensure that the institution complied with the highest standards of ethics had been implicated in wrongdoing “in their personal capacity” and would institute a forensic investigation to probe all transactions in relation to 25-percent shareholding in VBS.

“The PIC is concerned about the evidence that has been placed before the VBS inquiry to date, which points to impropriety on the side of two former PIC employees and has resolved to appoint a forensic investigation to probe all transactions in relation to its investment in VBS Mutual Bank.”

He also noted reports that a PIC official had accepted a bribe to facilitate a revolving credit facility of R350 million payment for VBS and said the investment manager would not tolerate wrongdoing among its staff, more so because it would undermine its job of generating positive returns for its clients.

African News Agency (ANA)

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This post was written by CTLive