SOUTH AFRICA TO PROBE $130 BILLION STATE PENSION FUND

South African President Cyril Ramaphosa has agreed to set up a commission of inquiry into alleged governance failures at the state-owned pension fund, the Finance Ministry said on Thursday.

The ministry said in Johannesburg that the probe would bring possible changes to the Public Investment Corporation’s (PIC) founding legislation.

“The commission’s terms of reference will include a review of the PIC’s governance and operating model, possible changes to the PIC’s founding legislation and its Memorandum of Incorporation and investment decision-making framework,” the ministry said in a statement.

PIC, which manages roughly 1.9 trillion rand (130 billion dollars) of civil servants’ pensions, has come under fire after an opposition party alleged that its chief executive Dan Matjila had misused funds and made careless investment decisions.

The PIC and Matjila have denied any wrongdoing.

The Treasury ordered the probe in July but it was up to Ramaphosa to formally anoint the process.