The Public Investment Corporation (PIC), one of Africa’s largest investment managers, will defend itself in court against allegations raised by South African opposition party, the United Democratic Movement (UDM) in an Open Letter to President Cyril Ramaphosa.

In the letter UDM’s leader Bantu Holomisa claims the PIC was allegedly fleeced by Harith and Lebashe, see video.

Investment firms Harith and Lebashe refute the allegations calling them “unfounded and vexatious”, “unsubstantiated and unfounded”. They argue that Holomisa’s letter came at the expense of both entities, professional reputations and aimed to attract public attention for Holomisa’s own political gain. Read the full letter here: Joint-Media-Statement1

In a strongly worded statement the PIC said:
“Earlier this month the UDM brought an urgent application in the North Gauteng High Court, Pretoria, in which it seeks for the suspension of the PIC CEO, Dr. Daniel Matjila. The PIC intends to oppose this application and is seeking appropriate legal advice to this effect. Submitting a letter with new allegations against the PIC and a number of other business entities to the office of President Cyril Ramaphosa, will not deter the PIC from defending itself before court in order to show that the UDM’s allegations are malicious, patently false and imminently contestable.

“We wish to reiterate our stance that the PIC follows a rigorous investment process in all its dealings and investments.  The PIC’s investment processes is such that no one person – in particular the PIC CEO – is vested with all the powers to unilaterally make investment decisions. The PIC manages the funds of all its clients within strictly prescribed investment mandates determined by its clients, is regulated by the Financial Sector Conduct Authority (previously the Financial Services Board), is subject to provisions the Public Finance Management Act (PFMA) and is audited by the Auditor General. We affirm that no amount of defamation and public attacks will desist the PIC from its mandate, which include enabling broad economic participation by all groups of South Africans, and Africans in particular.

“Details of the PIC’s Investment Process – including deal origination, screening, due diligence and deal structuring – are explained in 2017 Integrated Annual Report from pages 34 to 36 at the link, which is available at http://www.pic.gov.za/wp-content/uploads/2012/04/Integrated-Annual-Report-2017.pdf