Gill Marcus, Justice Lex Mpati and Emmanuel Lediga at the PIC Commission of Inquiry. Former executive head of risk and compliance at the PIC, Paul Magula, told the inquiry that there were serious irregularities at the asset manager that smacked of favouritsm and nepotism. Picture: Jacques Naude/African News Agency (ANA)
PRETORIA – Former executive head of risk and compliance at the Public Investment Corporation (PIC), Paul Magula, on Monday to the PIC Commission of Inquiry that there were serious irregularities at the asset manager that smacked of favouritism and nepotism.

Magula claimed that there were appointments of certain staff members made without following a transparent recruitment process.

The five cases identified by Magula:

1. Rubeena Solomon was appointed as an executive head: investments support, without the approval of organisational structure changes, advert and interview process. The PIC did not have staff promotion policy unless if I did not know or was established after I was dismissed. 

2. Adriaan Lackay was appointed in the Department of Communications without an advert and interview process. 

3. Koketso Mabe was on sabbatical leave for a year, however, was granted full bonus payout for the year 2015/16. How could someone in sabbatical be receiving a bonus without having worked, if he has not worked, is that regular to be getting a bonus? Koketso Mabe was a favourite of both the chief executive and chief financial officer. 

4. Brian Mavuka, general manager: finance was disciplined and given a written warning but also get a bonus and salary adjustment because he is a favourite of both chief executive and chief financial officer. Tumi Molobi (Senior Manager: Property Finance was forced to resign for the same thing that Mr Mavuka had done. (Internal Audit has reported in this regard and I got this in conversation with Internal Audit). 

5. Kapei Phahlamohlaka went and concluded a contract to sell a piece of client land in Midrand whereas he has no authority to do so as only such should have been decided in a committee, Portfolio Management Committee, nothing happened because he is a favourite to the chief executive (Internal Audit has reported and I got this in conversation with Head of Internal Audit).

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