PUBLIC INVESTMENT CORPORATION: High court orders PIC board to reinstate CEO Patrick Dlamini
It came as no surprise when the decision by the previous Public Investment Corporation board to suspend embattled Ceo Patrick Dlamini was overturned with costs.
In a significant ruling, the Gauteng High Court has overturned the previous Public Investment Corporation (PIC) board's decision to suspend CEO Patrick Dlamini. The court declared the 13 July suspension unlawful and invalid, setting it aside with immediate effect. Judge Mandla Mbongwe delivered a strong condemnation of the board's actions, ruling that their unilateral conduct and bypassing of mandatory statutory and contractual prerequisites made the suspension "ultra vires and invalid".
The court's judgment contains harsh rebukes of the board's governance, stating that they acted without ministerial approval and disregarded their own policies. Furthermore, the court criticized the board for misusing whistleblower protections, which do not grant them suspension powers. The judge emphasized the grave public-interest threat posed by the invalid suspension and warned of potential economic harm to the national economy.
The decision vindicates Dlamini's legal strategy and condemns the previous board's rogue behavior. However, the reinstated CEO still faces a R900-million damages claim and fiduciary duty questions.
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