PIC cleared Matjila on ‘incomplete evidence’
• Internal report shows unanswered questions after claims that CEO routed funds to ‘girlfriend’
The board of the Public Investment Corporation (PIC) exonerated CEO Dan Matjila of corruption charges in September 2017, even though the evidence on which it based its decision was incomplete.
Matjila was accused by a whistle-blower in 2017 of having channelled PIC funds to “a girlfriend”. The board cleared him of all charges on the basis of his written representations and an internal audit report undertaken to verify his explanation.
But the internal audit report, which was sent anonymously to Business Day this week, shows that in one important regard — the allegation that Matjila had asked a company that the PIC had recently funded to settle the debts of an alleged girlfriend — there was no conclusive finding.
In his representation to the board, Matjila acknowledged that he contacted Lawrence Mulaudzi of Kefolile Health to assist the woman in question, Pretty Louw, who was the owner of a beauty salon.
The PIC manages R2-trillion of government pension and other social funds. As the largest investor in the economy, it is constantly lobbied by private business interests for funding.
“Over the past year Louw [and partner Annette] Dlamini inquired on possible PIC funding for a mine and a manufacturing plant for cosmetic products.
“Based on preliminary discussions, the PIC advised them that it could not accede to this request,” Matjila said.
“However, the PIC had recently concluded a transaction with a BEE [black economic empowerment] group for subscription of shares in Ascendis Health and Bounty Brands.
“One of the conditions for PIC funding of BEE groups is for such parties to advance
BBBEE [broad-based black economic empowerment] in investee companies.
“Accordingly, Louw and Dlamini were referred to Mr Lawrence Mulaudzi [from the BEE group funded by the PIC] to establish if they would be suitable as part of the Ascendis Health and Bounty Brands supplier development programme as they were also involved in the beauty sector.”
In his attempt to verify Matjila’s version, internal auditor Lufuno Nemagovhani said “the response does not directly address whether he instructed any investee company to pay for the debt of Ms Louw”.
Nemagovhani also said that in terms of the scope of his investigation, he had not been required to establish whether Louw was Matjila’s girlfriend or not.
In his representation, Matjila denies an intimate relationship with Louw.
It is this incompleteness that has piqued the interest of the police, who have subpoenaed both Nemagovhani and PIC chairman Mondli Gungubele to provide the internal audit report; the recordings of the interview between Nemagovhani and Matjila; as well as the minutes and recordings of all the board meetings at the time.
Despite the inconclusiveness of the report and Matjila admitting that he had indeed asked Mulaudzi to do a favour for a third party, the board cleared Matjila.
Asked on Monday to justify their finding that Matjila had done nothing untoward in approaching Mulaudzi, the PIC said that it was unable to respond publicly to confidential deliberations of the board.
It said that the CEO of the PIC had emphatically denied all the allegations made against him, which came before the board in September 2017 and he continued to deny these.
“In its public statement issued on the 29th September 2017, the PIC board stated that it had met to receive feedback from internal audit division with regards to the allegations against the CEO, Dr Daniel Matjila.
“The board fully applied its mind to the report presented by internal audit and confirms its satisfaction with the report.
“The board has concluded that the allegations were baseless and that Dr Matjila is cleared of any wrongdoing.”