The Public Investment Corporation's chief executive, Dr Daniel Matjila. File picture: Dean Hutton

Johannesburg - The board of South Africa's R2 trillion state pension fund said on Friday that its chief executive Daniel Matjila had been cleared of any wrongdoing after an internal audit triggered by allegations that he had allocated funds improperly.

"The Board has concluded that the allegations were baseless and that Dr Matjila is cleared of any wrongdoing," the Public Investment Corporation said in a statement.

Matjila was recalled from an overseas trip by the board two weeks ago over allegations that he had used funds reserved for social spending to bankroll the business of someone close to him.