Dan Matjila resigns with immediate effect

The chief executive of the state pension fund, who had been under fire for more than a year, has resigned with immediate effect, the fund said on Friday.

President Cyril Ramaphosa ordered an inquiry into the Public Investment Corporation, Africa’s biggest asset manager, earlier this year after opposition parties accused CEO Dan Matjila of misuse of funds and careless investment decisions.

The PIC is the biggest investor in South Africa’s economy, holding a large volume of bonds issued by government and state-owned firms and equity stakes in some blue-chip companies.

Matjila denied the allegations. But on Wednesday the finance ministry, which oversees the PIC, said he intended to resign.

“The PIC board deliberated on the letter from the CEO, Dr Daniel Matjila, expressing his intention to resign. The board resolved that in the interest of the PIC and the CEO, we accept his resignation with immediate effect,” the fund said in a statement.

In 2017, Matjila was cleared of wrongdoing by an internal audit committee that looked into misconduct allegations.

But the collapse of local bank VBS early this year, where the fund had a stake, raised new questions about its handling of public money.