PIC bosses ‘reported to Hawks’

Commission told of bid to solicit R95m origination fee in SA Home Loans transaction

REVELATIONS emerged yesterday of how a number of former Public Investment Corporation (PIC) executives and a businessman involved in a R10 billion transaction with SA Home Loans (Sahl) were reported to the Hawks after attempting to solicit a R95 million origination fee from the financial services provider.

Those at the PIC Commission of Inquiry heard how former chief executive Dan Matjila, PIC executive head Royith Rajdhar and businessman Kholofelo Maponya were outed to the Hawks by Sahl chief executive Kevin Penwarden after Maponya allegedly sought to be paid an origination fee worth millions.

At the time, it was expected that Sahl would receive a second loan worth R10bn on condition that its transaction fee included a R45m payment to Maponya’s BEE consortium.

Testifying at the commission before retired Judge Lex Mpati, Ian Sinton, special counsel to Standard Bank, said Sahl and Maponya’s dispute escalated towards the end of 2017 after the R9bn facility had been fully drawn down.

This was also when Sahl applied for an additional R10 billion due to increased number of home loan applications.

Standard Bank owns 50% shares in Sahl. The remainder of the shares are owned by Maponya at 25% through his company Matome Maponya Investment (MMI) and 25% by the PIC and represented by Rajdhar and Wellington Masekesa on the board of directors of Sahl.

Sinton said he was approached by Penwarden who asked to discuss a matter of a “highly sensitive nature”.

He said in a meeting Penwarden informed him that in September last year, while they awaited approval of the R10bn loan, Maponya approached him jointly with Masekesa and informed him that Matjila was of the view that the approval of the additional R10bn loan was on condition that Sahl paid R95m to MMI as an origination fee.

Sinton also testified that the condition amounted to “soliciting a bribe” and he advised Penwarden to seek legal advice. Sinton added that Penwardend later told him that he reported the matter to the Hawks.

The inquiry, however, heard that Penwarden was unable to verify the contents of the condition with Matjila as he had already resigned as PIC chief executive.

The inquiry heard that Maponya served Sahl with new summonses last month despite having withdrawn a similar application in November 2016.

The inquiry heard that soon after the summonses were served, Penwarden presented the draft audited financial statements which were presented to the Audit and Risk Committee for approval and recommendations to the board.

Sinton also revealed that at one stage Maponya served the Sahl with an invoice of R59.8m, allegedly claiming that it was his personal intervention that prompted the PIC to agree to the awarding of the loan.

He said that the board rejected the claim. “Mr Maponya then procured the delivery of a letter from the PIC to Sahl and the borrowers. In it, the PIC purportedly gave notice that it had ceded to MMI a right which the GEPF (Government Employees Pension Fund) had to receive R45m as a commitment fee from the borrowers and Sahl under the R9bn facility.

“The letter was signed by Matjila, and stipulated Rajdhar to be the originator of (it)… Maponya then informed me that this cession was the PIC’s chosen method of compensating him for his interventions for which Sahl has denied any liability,” Sinton said.

Maponya has vehemently denied any wrongdoing and repeated his preparedness to have his day at the PIC commission.

Hawks spokesperson Brigadier Hangwani Mulaudzi did not respond to calls and SMSes at the time of publication.