Businesses with purpose are more caring
THINGS are set to get more interesting as we are taken further down the rabbit hole at the Sammy Marks Building as retired Judge Lex Mpati, assisted by Emmanuel Lediga and Gill Marcus, delve deeper into alleged improprieties at the Public Investment Corporation (PIC).
The PIC commission of inquiry last week heard some rather startling claims by witnesses who appeared before it, including claims of political interference by Sekunjalo chairperson Dr Iqbal Survé.
Survé was explicit in his testimony, placing PIC chairperson, Deputy Finance Minister Mondli Gungubele, at the helm of a movement aiming to “crush” his companies. Gungubele has indicated that he will not respond to these allegations, according to media reports.
Another interesting revelation was that former executive head of risk at the PIC, Paul Magula, may have lied to the commission under oath when he denied any wrongdoing with regard to the looting of VBS Mutual Bank.
“I have never participated in any illegal, fraudulent activities during my tenure as a VBS board member.
“Some of the things like fictitious deposits, fraudulent withdrawals, bribes… that are said to have happened at the VBS I got to know about when I went before the prudent authority’s (Reserve Bank’s) forensic investigators,” said Magula during his testimony.
This was nullified by Kuben Naidoo, a deputy governor of the South African Reserve Bank, who told the commission that Magula had confessed to Terry Motau SC’s forensic investigators that he received about R7.6 million from VBS Mutual Bank for personal gain.
Of note is that the commission also heard of claims that PIC executives were made to account for their submissions to the commission of inquiry, which led to the suspension of acting chief executive Matshepo More.
The PIC said in a statement: “Allegations pertaining to interference with the process of the Commission of Inquiry were brought to the attention of the PIC board.
“The board deliberated on the matter and concluded that to ensure free participation of staff in the Commission of Inquiry process, to place Ms Matshepo More on precautionary suspension with immediate effect.”
More is yet to give her side of the story publicly or at the commission after she was initially implicated in corruption by a whistle-blower who goes by the pseudonym of James Nogu/Noko.
Noko also implicated businessman Lawrence Mulaudzi, a beneficiary of multiple deals from Africa’s largest
THE PIC COMMISSION of inquiry last week heard some rather startling claims by witnesses who appeared before it, including claims of political interference by Sekunjalo chairperson Dr Iqbal Survé. I
asset manager, who emotionally defended his love affair with PIC board member Sibusisiwe Zulu before the commission.
Zulu was also implicated by Noko, who said she was responsible for handing over R6 billion to Mulaudzi’s companies.
Mulaudzi vehemently denied this before the commission, drawing the sympathy of assistant commissioner Gill Marcus, who said it is one thing to make allegations that need to be investigated and it is another thing to bring people’s personal lives into the mix.
With all these revelations being made at the commission, one is tempted to connect the dots, but it would be rather premature at this stage, considering the number of investee companies that may have lost billions of PIC investments and have not made submissions to the commission.
The PIC executives have quite a lot to tell about how these investments were made and if there is any consistency in the way various transactions of various companies are dealt with, or if there is indeed external influence in certain cases.
All we can hope for is that, with the extension granted to the commission, all implicated will appear and Justice Mpati, Marcus and Lediga, will get to the bottom of this rather intricate rabbit hole. THE RESILIENCE of every business in South Africa today is being thoroughly tested: battling an uncertain policy environment, electioneering, an unstable power supply and the imperative of employing increasingly dissatisfied and poorly educated young people.
But our challenges don’t end there. Rising social activism, rapid globalisation and digitalisation have given customers and shareholders unprecedented access to information about almost every aspect of businesses. Brands are being held to account for their contribution to society and impact on the environment – as much as their contribution to their bottom line.
Purely profit-orientated businesses are increasingly at risk of being exposed for their role, or lack thereof, in contributing to the greater good. But businesses can reduce this risk and still satisfy shareholders by having a clear purpose. This starts with evaluating their current purpose beyond the performance objective. Being a purpose-driven company is as much about protecting your bottom line as it is about growing it. Recent studies show that employees in purpose-driven businesses find greater meaning in their work, are more engaged, and are five times more likely to stay in their current job. From a consumer perspective, businesses with purpose are perceived to be more authentic and caring. As a result, consumers are more loyal to them. This holds particular relevance for South Africans.
As Business Unity South Africa president Sipho Pityana identified at the Investment for Inclusion Forum, growth on its own is not enough to reduce inequalities, and business needs to play its part in driving inclusion.
Certainly, business must not lose track of the profit motive; indeed profit with purpose can be more profitable. But it’s possible for business and wider society to grow, together.