AYO Technology takes CIPC to court over R4.3bn PIC deal
This after the CIPC issued a compliance notice to the directors at the PIC demanding they recoup R4.3 billion that the PIC invested in AYO together with interest for six months.
JOHANNESBURG - JSE-listed company AYO Technology Group has taken the Companies and Intellectual Property Commission (CIPC) to the High Court in Pretoria.
This after the CIPC issued a compliance notice to the directors at the Public Investment Corporation (PIC) demanding they recoup R4.3 billion that the PIC invested in AYO together with interest for six months.
The investment was at the centre of the inquiry into the PIC with the commission hearing that the shares were sold at an inflated rate.
However, AYO has hit back by asking the High Court to intervene on an urgent basis and declare the notice from the CIPC unlawful.
The deputy chairperson of the PIC board Xolani Mkhwanazi has argued that the shares the PIC purchased were valid and will resist any attempts to recover the money.
Meanwhile, former PIC executive Paul Magula revealed that ex-CEO Dan Matjila was so desperate to go ahead with the controversial Ayo Technology Solutions transaction that he came back from leave to approve it.
Magula was fired last year for poor performance and the collapse of VBS Mutual Bank.
On Monday, he testified at the PIC commission of inquiry about Matjila’s involvement in the dodgy R4.3 billion investment in Ayo Technology Solutions.
Magula said investment decisions were not based on rational interrogation and committees only existed to rubber stamp CEO and CFO decisions.
“The CEO was so desperate to have the transaction done to a point that he had to come back from leave to force the meeting to happen to approve the transaction. The question that comes forth with regards to this is, why this desperation even when the senior members of the sanctioning committee were not available?”