PIC had to sell off shares to invest in Ayo, inquiry told
The Public Investment Corporation (PIC) commission of inquiry has heard about the urgency with which two investments were signed off, both owned by media mogul Iqbal Survé.
JOHANNESBURG - The Public Investment Corporation (PIC) commission of inquiry has heard about the urgency with which two investments were signed off, both owned by media mogul Iqbal Survé.
The PIC invested in Survé's Ayo Technology Solutions and Sagarmatha Technologies, which has raised a number of concerns, especially regarding policies and processes which may have been flouted.
The R4.3 billion investment in Ayo has been red flagged and interrogated at the inquiry, which is probing allegations of impropriety.
The current general manager for listed equities at the PIC, Lebogang Molebatsi, has told the commission of inquiry that there was immense pressure, especially from former CEO Dan Matjila to sign off on the Ayo and Sagarmatha Technologies.
Portfolio manager Gaanewe Adams then revealed that the PIC didn't have the funds to invest in Ayo and had to sell off shares.
"We were able to liquidate what was needed - that was R3.7billion or R3.8 billion."
Adams says shares from several companies including Anglo were sold to fund the transaction.
At the same time, Ayo will be taking the Companies and Intellectual Property Commission to court to interdict a compliance order which states that the PIC should recover the R4.3 billion it had invested.
(Edited by Mihlali Ntsabo)