As suspended Public Investment Corporation (PIC) chief executive Patrick Dlamini challenged his precautionary suspension in the Gauteng High Court on Tuesday, a whistleblower asked Parliament to intervene urgently, alleging that the recent overhaul of the corporation's board could affect its ability to defend the case.
The Mail & Guardian has obtained a protected disclosure submitted to Parliament's Standing Committee on Finance in which the whistleblower raises concerns about the timing of the board's reconstitution ahead of the High Court proceedings.
The whistleblower has asked Parliament to exercise its oversight role by investigating the circumstances surrounding the board's reconstitution and the implications for the pending litigation.
According to the submission, the board that resolved to place Dlamini on precautionary suspension and authorised the corporation's legal response has effectively been dismantled ahead of Tuesday's hearing.
"The organ that took the suspension decision and that instructed the PIC's defence of it, has been removed days before the hearing at which that defence must be advanced," the disclosure states.
Rather than arguing that Dlamini's application is likely to succeed on its merits, the whistleblower contends that the board changes raise questions about who will defend the application and whether the PIC's legal position will remain unchanged.
The submission also challenges the process followed in reconstituting the board, arguing that directors facing removal were entitled to notice and an opportunity to make representations before being replaced.
It calls on Parliament's Standing Committee on Finance to summon Finance Minister Enoch Godongwana, former PIC chairperson David Masondo and former board members to explain the decision to reconstitute the board and the arrangements made for the corporation's legal representation.
The disclosure further asks Parliament to obtain the legal advice, board resolutions and records relied upon when Dlamini was placed on precautionary suspension.
Dlamini's urgent application seeks an order declaring his suspension unlawful and setting it aside, arguing that the board lacked the authority to suspend him and failed to follow the PIC's own governance and whistleblower processes.
The hearing comes after months of upheaval at the PIC, including Dlamini's suspension, the resignation of Masondo and several non-executive directors, protected disclosures alleging political interference, and an investigation by the Financial Sector Conduct Authority.
Last week, National Treasury confirmed that Finance Minister Enoch Godongwana had requested board members either to resign or explain why they should not be removed before appointing a new board.
The Mail & Guardian put the allegations contained in the protected disclosure to both the PIC and National Treasury, including questions about the corporation's representation in the pending litigation. Neither the PIC nor National Treasury responded by the time of publication.
People of Joburg said it intended to oppose Dlamini's application through its legal representatives, describing itself as an intervening party in the proceedings. The M&G has not independently verified the status of that intervention.
Whether the board changes have any bearing on the proceedings will ultimately be determined by the court. For now, the protected disclosure places fresh allegations before Parliament about the timing of the board's reconstitution and its potential implications for the pending litigation