The board of the Public Investment Corporation (PIC) has placed its CEO Patrick Dlamini on precautionary suspension, saying it is necessary to give him sufficient space and time to respond to allegations of impropriety against him that were submitted to the board in a whistleblower report last month.

"In line with applicable labour legislation and internal PIC policies, the precautionary suspension is intended to ensure a fair, objective and independent investigation into these allegations. The suspension does not, in any way, constitute a finding nor is it a pronouncement of any wrongdoing on the part of the CEO," the PIC clarifies.

The board is finalising interim arrangements for the appointment of an acting CEO.

Further, the PIC has also resolved that August Van Heerden will cease serving as acting chief investment officer (CIO). This decision follows a resolution by the PIC's biggest client, the Government Employees Pension Fund.

To ensure stability and optimum management of PIC investment decisions, the board has resolved that its head for fixed income in listed investments Leon Smit be appointed as acting CIO.

The PIC says Smit is a highly accomplished investment professional with more than three decades of experience in fixed income, treasury management and financial markets.

He joined the PIC in August 2000 and currently leads the management of listed fixed income investments and cash flows in accordance with client mandates. He is responsible for overseeing the PIC's listed fixed income dealing activities on the domestic market and driving investment performance while maintaining prudent risk management.

Smit holds a BComm in Business Economics from the University of Pretoria and has completed advanced qualifications in Treasury Management, Financial Markets and Financial Advisory and Intermediary Services. Previously he has acted as CIO for a number of interim periods.

"The board remains committed to the highest standards of governance and institutional integrity," the PIC assures the public.