Holomisa’s PIC claims spurned
CONVINCED THERE’S CORRUPT ACTIVITY The three businessmen considering legal action by laying crimen injuria charges.
The UDM leader alleges shady dealings by top businessmen.
Just because we are a black managed and owned business, there is an insinuation that we have done something wrong and we are corrupt.” Tshepo Mahloele, chief executive of infrastructure investor Harith General Partners, is fuming at the suggestion by United Democratic Movement (UDM) leader Bantu Holomisa that he is one of three top businessmen allegedly benefitting from shady dealings at the Public Investment Corporation (PIC).
The battle between business and politics has intensified after Holomisa penned a letter to President Cyril Ramaphosa with accusations of businesspeople securing R2 billion in funding from PIC chief executive Dr Daniel Matjila.
Holomisa last week demanded that Finance Minister Nhlanhla Nene suspend Matjila from PIC, which manages R2 trillion worth of investments on behalf of the Government Employees Pension Fund and other state funds.
The other two businessmen are Jabu Moleketi, former deputy finance minister in Thabo Mbeki’s administration, and Warren Wheatley, executive director of Lebashe Investment Group.
Mahloele himself is a former PIC executive.
The big question is whether Matjila can unilaterally approve investments of up to R2 billion. This is a material amount, even when one considers it in relation to the PIC’s R2 trillion firepower.
Deon Botha, the PIC’s head of corporate affairs, strongly rejects this, saying the entity’s mandate and investment processes do not allow for Matjila to be “vested with all the powers to unilaterally make investment decisions.”
Holomisa says his letter unveils a “complex web” of ownership by the three businessmen.
Among the alleged beneficiaries from PIC funding are Harith General Partners (linked to Mahloele and Moleketi, who serves as board chairperson); online lender RainFin (linked to Mahloele, Moleketi and Wheatley who are all directors); Lebashe Investment Group (founded by Wheatley); and investment management firm Aluwani Capital Partners (linked to Moleketi who serves as chairperson and Wheatley who sits on the board).
Holomisa’s letter reads: “Mr President, instead of being a giant machinery that creates wealth opportunities ... it is clear that individuals such as Mahloele, Matjila, Moleketi, and Wheatley are at least double or triple dipping in the PIC’s funds.”
Mahloele dismisses Holomisa’s allegations as “nonsense” as the only funding he received from the PIC was in 2006 when he left the organisation to establish Harith. Back then, he says, the PIC offered Harith seed funding of R21 million in exchange for a 30% stake while the remaining 70% is held by management and staff.
Harith repaid the PIC funding in 2008 with a 25% interest rate, says Mahloele. Holomisa’s accusations have been rejected by Moleketi and Wheatley.
All three businessmen are considering taking legal action by laying crimen injuria charges against Holomisa.
Mahloele dismisses Holomisa’s claims as ‘nonsense’