PIC lost R4.6bn in US Erin Energy

FORMER Public Investment Corporation (PIC) chief executive Dr Dan Matjila yesterday continued to testify how several investment transactions transpired between the state-owned asset manager and various companies.

Matjila said the investment into Erin Energy had been “a poor and regrettable decision”.

Matjila, who had also worked as the chief investment officer at the PIC, was giving evidence before the PIC Commission of Inquiry led by retired Supreme Court Judge Lex Mpati, and investment expert Emmanuel Lediga.

Matjila confirmed that the PIC had lost up to $333 million (R4.6 bn) on the Erin Energy investment.

The US-based oil company later filed for bankruptcy.

He said the invested funds in the company were just “a fraction of the percentage” of the total PIC portfolio, which currently stands at R2 trillion.

Breaking it down, Matjila said the investment comprised $270m via the listing of CAMAC on the Johannesburg Stock Exchange (JSE).

“The PIC would own 30% of CAMAC Energy and shares, it would have a board seat and a presence on the audit and risk committee,” he told the inquiry.

Erin Energy is one of the few transactions Matjila has expressed dismay over.

Last week, he informed the commission of his dissatisfaction with how the deals involving the now defunct VBS Mutual Bank, and SA Homeloans had panned out.

Matjila has been implicated by various former colleagues while he was at the helm of the PIC, with some stating that they had operated under a culture of fear and intimidation.

Others fingered him for approving questionable deals.

Matjila said another deal – with Daybreak investment – was executed by Kholofelo Maponya, a man who Matjila described as having “no respect for governance”.

Maponya, a Joburg businessman who once said he was itching for his day at the PIC Commission of Inquiry after being implicated in soliciting a R95m origination fee from SA Home Loans, was blasted by Matjila.

The former PIC boss insisted that under Maponya’s leadership, there had been little respect for good governance, and that SA Home Loans took a big strain to the point of near collapse.

Matjila was asked if Maponya’s poor governance was picked up in the due diligence, to which he replied no.

Matjila then explained that the PIC had to intercede to save its investment.

He also relayed how they had removed Maponya and replaced him with Tinus de Jonge, while looking for a more suitable individual, who then managed to stabilise the operations.

Matjila said the so-called “reign of terror” under his tenure at the helm of the asset manager was coined by some elements in the media to tarnish his reputation.

President Cyril Ramaphosa has given the commission until the end of the month to wrap up its proceedings.

It has to then submit a report to him.

It is unclear whether Judge Lex Mpati and his team would need an extension to hear the responses of those who have been implicated in Matjila’s testimony.

The hearing continues.