PIC executive resigns after testifying in VBS investigation

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The Executive Head for Legal Counsel, Governance and Compliance at the Public Investment Corporation (PIC), Ernest Nesane, has resigned.

Nesane testified before the forensic investigation into VBS Mutual Bank earlier this week.

In a statement, the PIC says after Nesane testified it was made aware of serious allegations of impropriety against Nesane, who served with  Paul Magula as one of two PIC delegated Directors on the Board of VBS Bank, until the bank was placed under curatorship by the South African Reserve Bank in March in 2018.

“As company directors and PIC executives, both Nesane and Magula were entrusted with duty of care to ensure that the institution and its business practices apply the highest standards of ethics and good corporate governance,” says the PIC.

The PIC says it is concerned about the developments that have come to light since the commencement of the VBS enquiry and more so that two of its former employees have been implicated of impropriety in their personal capacity.

“The PIC is concerned about the evidence that has been put before VBS enquiry to date, which points to impropriety on the side of these two former PIC executives and has resolved to appoint a forensic investigation to probe all transactions in relation to its investment in VBS Mutual Bank.”

The PIC is a shareholder in VBS, holding approximately 25% of the company’s equity.