Today's Labour News

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picBusinessLive reports that in an announcement on Tuesday at the start of the second day of the inquiry into the Public Investment Corporation (PIC), it was announced that the executive for listed investments, Fidelis Madavo, had been suspended by the PIC with immediate effect.  

The PIC subsequently released a statement that assistant portfolio manager Victor Seanie had been suspended along with Madavo.  The PIC said:  “A preliminary investigation report was submitted to the board on January 21.  The preliminary report clearly reflects a blatant flouting of governance and approval processes of the PIC.  Employees of the PIC have also been implicated in these irregularities.”  The investment in Iqbal Survé’s Ayo Technologies by the PIC had been a controversial transaction.  The PIC invested R4.3bn in Ayo at the time of its listing on the JSE for just a 29% stake.  Rumours circulated that no substantive due diligence had been done by the state-owned asset manager on the investment.  Some analysts also questioned how the PIC could justify the valuation for a business that had a net asset value of just a few cents per share.  Madavo was present at the inquiry on Tuesday and has agreed to testify under oath to the commission.

  • Read Warren Thompson’s report on this story in full at BusinessLive
  • Read too, PIC suspends two staff members following probe into Ayo deal, at City Press

Get other news reports at the SA Labour News home page