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South Africa orders probe into $150 bln state pension fund -treasury
(Updates with context)
JOHANNESBURG, July 25 (Reuters) - South Africa's finance
minister on Wednesday ordered an independent inquiry into the
Public Investment Corporation (PIC), the state pension manager,
following corruption allegations involving senior executives.
This month the PIC, Africa's largest fund with over $150
billion assets under management, allowed its executive head for
governance and compliance to resign with immediate effect over
wrongdoing linked to the collapse of the politically connected
VBS Mutual Bank.
Another executive was fired earlier this year over his role
in the matter.
The curator who the central bank appointed for VBS said in
an affidavit that an unnamed PIC executive had taken a 5 million
rand ($379,000) bribe to facilitate a 350 million rand payment
to the bank.
"The directive by the Minister to the board of the PIC is to
commission a proper forensic investigation into the allegations
against certain PIC executives," the National Treasury said in a
Details on the independent inquiry and its terms of
reference would be announced at a later date.
The chief executive of the PIC, Dan Matjila, was cleared of
wrongdoing by an internal probe last year, but has this year
faced calls from an opposition party that he be investigated for
allegations of misuse of funds and careless investment
The PIC is the biggest investor in South Africa's economy,
holding a large volume of bonds issued by government and
state-owned firms, as well as stakes in blue-chip companies such
as miner Anglo American, lender Barclays Africa
and grocer-retailer Shoprite.
($1 = 13.1841 rand)
(Reporting by Mfuneko Toyana; Editing by James Macharia and
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