BL Premium reports the Public Investment Corporation (PIC) is poised to take disciplinary action against 11 staff members for their part in the decision to invest more than R4bn in Ayo Technologies.
The PIC manages more than R2-trillion in government employees’ pension money and other government funds. The recommendation, in an internal PIC report, comes as the fallout from the organisation’s decision to take part in Ayo’s initial public listing in December 2017 at an inflated valuation, continues to bedevil the fund manager. The PIC bought a 29% stake at R43 a share, implying a valuation of R14.8bn, but a few months before, financial statements showed that Ayo had total assets of R292m and a book value of R67m. Since then, the share has traded at far below the original valuation. Several staff testified at the Mpati commission of inquiry that the investment had the support of former PIC CEO Dan Matjila. In addition, 11 other staff members, including suspended CFO Matshepo Moré, have been accused of cutting corners and diverting from due process to make sure the deal happened. The staff members who could face disciplinary action could receive sanctions from dismissal to counselling. Not all of those named in the report have had the opportunity to reply to the allegations.
- Read the full original of the report by Carol Paton and Warren Thompson on the above at BusinessLive (paywall access only)
- Read too, Suspended PIC boss defends her role in R4.3bn AYO deal, at The Star
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