South Africa’s Treasury backs CEO of $160 billion state pension fund

JOHANNESBURG (Reuters) – South Africa’s National Treasury on Thursday rallied behind Dan Matjila, the chief executive of the government’s 2 trillion rand ($160 billion) state pension fund, dismissing a media report that said it was considering his suspension.

“Treasury has faith in Mr Dan Matjila’s leadership,” it said in response to emailed questions. “The Minister is satisfied with the PIC’s overall performance.”

Matjila did not respond to calls for comment.

Matjila, at helm of the Public Investment Corporation since 2014, has come under fire in recent weeks after one opposition party, the United Democratic Movement, asked Treasury to suspend and investigate him for misusing funds.

The UDM alleges that Matjila used funds to bankroll a business of someone close to him.

Business Day newspaper said the PIC board was investigating the fund’s decision to pay 4.3 billion for a 29 percent stake in loss-making start-up technology firm, Ayo Technology.

Ayo Technology (J:), which debuted on the Johannesburg bourse in December last year, is trading at 35 rand per share, giving a market capitalization of around 12 billion rand. That suggests the PIC stake is now worth roughly 3.5 billion rand.

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