PIC dodgy deals trail is long

INQUIRY: NOT JUST ABOUT CEO DAN MATJILA

Terms of reference in probing governance, corruption and mismanagement are far-reaching.

the scope of the inquiry and focus predominantly on whether the investment decisions made by the PIC flouted any policy or law, or benefited a select few.

Arguably, this will be a key focus given the PIC’s questionable investments, such as its more than 25% shareholding in VBS Mutual Bank, and paying R4.3 billion to secure a 29% stake in Iqbal Surve’s Ayo Technologies in December 2017 – which market watchers said was overvalued.

The PIC’s trail of dubious transactions is long: it backtracked on its enthusiastic plans to invest in Surve’s tech start-up Sagarmatha, which appears largely to be made up of loss-making businesses, and its investment in Mozambique-based S&S Oil Refinery, in which Nene’s son was involved, according to Mail & Guardian and amaBhungane.

The inquiry is set to produce a final report with recommendations by April 2019.

It will examine whether there was any impropriety regarding PIC investment decisions that contravened any legislation and policy which resulted in “any undue benefit for any PIC director, or employee or any associate or family member of any PIC director”.

Other terms of reference leave the door open for the inquiry to probe the role of PIC directors.

“The Commission must enquire into, make findings, report on and make recommendations on whether any PIC director or employee used his or her position or privileges, or confidential information for personal gain or to improperly benefit another person,” the terms of reference document reads.

Given the sheer size of its investments and its apparent appetite for BEE investments, the PIC has found itself at the centre of allegations of funding a coterie of politically-connected individuals.

In his letter to Ramaphosa, UDM president Bantu Holomisa accused Matjila of personally releasing funding worth R2 billion without approval from the PIC’s board to businessmen with strong ties to the PIC and government.

Matjila and the PIC have denied allegations of wrongdoing

Considering the various political influence allegations levelled against Matjila, the inquiry will also probe whether the PIC has adequate measures in place to ensure that investments do not unduly “favour or discriminate against” prominent influential persons, their immediate family members or known associates.