Fedusa wants PIC to declare Nesane, Magula delinquent directors

A forensic investigation into the troubled VBS Mutual Bank revealed serious allegations of impropriety against the PIC’s head of legal counsel, governance and compliance, Ernest Nesane, who subsequently resigned.

Picture: Investment Corporation. Picture: pic.gov.za

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) has called for the Public Investment Corporation (PIC) to declare Ernest Nesane, who has been implicated in the VBS Mutual Bank scandal, a delinquent director.

The federation says that it has noted Nesane's resignation last week but it wants him and another former director, Paul Magula, to face further consequences for neglecting their fiduciary responsibilities.

A forensic investigation into the troubled VBS Mutual Bank revealed serious allegations of impropriety against the PIC’s head of legal counsel, governance and compliance, Nesane, who subsequently resigned.

Now Fedusa wants both Nesane and sacked director, Magula, declared delinquent.

The federation’s Denis George: "We believe that we must have both of these directors declared delinquent in term of Company Law but we want the PIC to go one step further and lay criminal charges."

The PIC has said that it is concerned that the two have been implicated in this way.