Chairperson of the inquiry, former president of the Supreme Court of Appeal, Justice Lex Mpati,
PRETORIA – Former executive head of risk and compliance at the Public Investment Corporation (PIC), Paul Magula, on Monday said salary adjustments at the PIC were imposed to the executive management and management was just given letters to sign and give letters to staff members.

Magula made these claims while making his submissions to the PIC Commission of Inquiry, where he said some executives were never ready to sign their employees’ letters. 

“For example IT Executive Head: Vuyokazi Menye did not sign the letters for her team. Sandile Sibiya, a remuneration specialist, even resigned as he felt that the process was flawed and he was responsible for calculations thereof and found the process to be unfair,” he said. 

Magula said with regard to the salary adjustments and bonus payments allocation principle, rational thought process would be that such adjustments should be engaged with the executive management with regards to principles, as management would know their staff better than the executive directors. 

“To executive management surprise, after the salary adjustment, they were told that there will be a freeze on filling all positions as there is the concern of not meeting financial targets as set in the corporate plan. 

“Email was sent to this effect by the CFO. The question that arises is ‘was there any sustainability tests done prior to the salary adjustments against the targets as set in the corporate plan? Why this secrecy around this salary adjustment process that no regard of management input was considered?

“Salary adjustments around August 2017 were never discussed with EXCO and no input whatsoever was sought from the executive management of PIC. Principles of such adjustments were never discussed with executive management at an EXCO meeting to have understood how calculations and all relating to adjustment will be done,” said Magula.

BUSINESS REPORT ONLINE