Rand Mutual Assurance is facing internal dissent and external intervention calls after an Edward Nathan Sonnenbergs forensic investigation revealed that executive head of investments Thiru Pather participated in evaluating a R32bn asset consultancy tender while simultaneously serving on the investment committee of bidding firm 27four Investment Managers, News24 reported.
The Bottom Line
- The Tender: A R32bn asset consultancy procurement process at Rand Mutual Assurance triggered governance disputes and external intervention requests from Public Interest SA.
- The Conflict: Forensic findings by Edward Nathan Sonnenbergs showed executive head of investments Thiru Pather evaluated bids while still on the investment committee of bidder 27four Investment Managers.
- The Process Breakdown: Investigators found that the 18-month procurement cycle lacked a formal board resolution when launched by the investment committee in mid-2024.
Forensic Findings Detail Procurement Breaches at Rand Mutual Assurance
The Edward Nathan Sonnenbergs investigation established that Thiru Pather actively took part in Rand Mutual Assurance’s tender evaluation team at the start of October 2024. This participation occurred nearly four weeks before her formal resignation from 27four Investment Managers, a black-owned asset management firm with over R2-trillion in assets under advice, as reported by Sunday Times.
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According to the forensic report, the entire 18-month procurement initiative lacked formal authorization. Rand Mutual Assurance’s investment committee initiated the tender in mid-2024 following a verbal update to the board in March 2024, but proceeded without a board resolution.
Pather formally declared her prior relationship with 27four Investment Managers to the investment committee in November 2024. However, the company secretary did not issue a conflict assessment until February 2025. This delay exceeded three months after the investment committee had already approved the award of a three-year private markets consultancy mandate to 27four Investment Managers.
Direct Talks and Competing Bidders in the R32bn Mandate
The procurement timeline involved multiple shortlisted institutional bidders alongside 27four Investment Managers, including Alexander Forbes, Novare Holdings, and Selekane Asset Consultants. Investigative findings confirmed that direct scope and fee discussions occurred between 27four Investment Managers leadership and RMA officials in early 2025 while the broader competitive tender was formally paused.
27four Investment Managers stated that it participated in the request for proposal when the process was reopened in September 2025, made a full submission in October 2025, and presented to management and the investment committee. The firm noted it was informed in May 2026 that the process had been delayed, without receiving the final outcome.
Despite Pather’s assertions, investigators concluded she participated in the procurement process while actively conflicted and breached her fiduciary duties. Legal evaluations indicated that senior management may be required to file reports under the Prevention and Combating of Corrupt Activities Act of 2004 and involve the Prudential Authority.
| Procurement Milestone | Timeline Date | Operational Status |
|---|---|---|
| Initial Board Update | March 2024 | Verbal briefing given without formal resolution |
| Tender Evaluation Phase | October 2024 | Conflicted official participates in bid assessment |
| Mandate Award Approval | November 2024 to February 2025 | Investment committee approves award prior to secretary conflict assessment |
| Tender Reopening & Submissions | September to October 2025 | Process reopened with new submissions and management presentations |
Regulatory Interventions and Corporate Response
Public Interest SA has sought formal intervention regarding the governance failures at Rand Mutual Assurance. Board member Tjaart Esterhuyse stated that the company takes governance allegations seriously but declined to comment on specific findings.
“To ensure procedural fairness, confidentiality, and respect for all parties’ rights, neither RMA nor any party will comment on specific allegations before facts are established,” Esterhuyse noted. Board chairman Thabo Dloti, Mabe, Desai, and Pather did not respond to inquiries sent via corporate communications.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
