Multimillion dollar African investment fund Public Investment Corporation to defend itself in court against UDM

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

Related Content

PIC Commission hands over final report

The PIC Commission of Inquiry has handed its final report to President Ramaphosa. The commission began in January 2019 after a request to investigate some transactions at the PIC was brought to the President’s attention by UDM leader, Bantu Holomisa. The commission has now completed its work and it is up to President Ramaphosa to act on the findings. CNBC Africa’s Kopano Gumbi filed this report.

Reuel Khoza: PIC not conducting a witch hunt against Iqbal Survé

The Public Investment Corporation, which manages assets on behalf of the Government Employees Pension Fund was at GEPF's annual results presentation. Reuel Khoza, Chairperson of the Public Investment Corporation provided an update on when it will appoint a new CEO and explained why it is not conducting a witch hunt against Iqbal Survé, who heads Sekunjalo Investments.

PIC weighs in on Old Mutual

The Public Investment Corporation delivered its annual results in Parliament today. During its presentation to the standing committee on finance the PIC said it is considering an application to liquidate Sekunjalo and revealed that it grew assets under management by R48 billion to R2.1 trillion. Chairman of the PIC Board, Dr Reuel Khoza spoke to CNBC Africa about its investment in Old Mutual.

Why Old Mutual’s second largest investor met with it over dispute with former CEO Peter Moyo

As financial services group Old Mutual prepares for another face-off with its former CEO Peter Moyo in court today, its second largest shareholder met with the company,

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

COVID-19 lock-down: This is how much SA’s alcohol ban cost the economy

After a two month ban on liquor sales, stores reopened today and thirsty consumers were waiting in line to replenish their stock. While the industry expects liquor sales to spike in the coming days, the ban on sales during the Covid-19 lock-downs has cost over 117,000 jobs. That’s according to the South African Liquor Brand owners Association (SALBA). SALBA CEO, Kurt Moore joins CNBC Africa for more.

Absa May manufacturing index surprises

The rand is rallying. Eight million people are back at work. Petrol will cost one rand and eighteen cents per litre more from next month and the latest Absa Purchasing Managers Index business activity sub-index rebounded to 43.2 in May after collapsing to an all-time low of 5.1 in April. The magnitude of the increase is surprising, given that most parts of the manufacturing sector could only operate at 30 per cent of employment capacity in May due to lockdown. Miyelani Maluleke, Economist at Absa Corporate and Investment Banking joins CNBC Africa for more.

COVID-19: Are Rwanda’s taxi motorbikes equipped for return?

Last night the Rwandan Prime Minister's office announced that the previously slated date of reopening of passenger motorbikes - which was meant to be today - has been extended until further notice. As the country gears up to reallow taxi-motorbikes to start operating again after over 2 months of being out of service due to Covid-19 measures; tech and mobility company, Pascal Technology has been hard at work equipping them to meet new regulatory measures. CNBC Africa spoke to Pascal Ndizeye, CEO and Founder, Pascal Technology to gauge their progress.

Health care group RH Bophelo lists on the Rwanda Stock Exchange

South African multi-million health care company, RH Bophelo today cross-listed on the Rwanda Stock Exchange, making it the 9th company to be listed on the RSE stock market. This comes at a time when another South African company, Cimerwa PPC is also planning the same move. Celestin Rwabukumba, CEO, Rwanda Stock Exchange joins CNBC Africa for more.

Partner Content

Sanlam Emerging Markets and its partners on the African continent invest over $12 million to fight COVID-19

As we go through this global pandemic together, it is the little things we miss. A high five, a handshake, a walk...

VIVO CEO is a dynamic leader for this innovative global brand

May 2020 -- Six months ago the vision for vivo in South Africa was just beginning to...

Trending Now

“Stop this culture of frivolous allegations” former World Bank Treasurer Arunma Oteh defends African Development Bank President

"So my appeal really is that we dispense of this issue. That we stop this culture of frivolous allegations around the times of elections. And allow the African Development Bank to support the African continent at this important time.”

How LGBTQ+ Pride Went From Movement To Marketing

With all of the changes to this year’s Pride lineup, many are left wondering how these virtual events will maintain their support of small LGBTQ+ owned businesses, like restaurants, bars, and brick-and-mortar stores, as well as LGBTQ+ focused nonpr

CNBC Africa celebrates 13 years on air

Today, June 1st marks our 13th Anniversary at CNBC Africa. As we celebrate our work and experiences at a time when the world is subdued by the coronavirus, here are views of some of our top analysts and friends from over the years....

Capital Appreciation’s Bradley Sacks on COVID-19 impact on business

Capital Appreciation, a JSE fintech player raised its final dividend by over 17 per cent following an increase in annual revenue and profits. The payment solutions provider saw increased demand for its digital and cloud based services and said the Covid-19 pandemic has not impacted earnings negatively. Bradley Sacks, Joint CEO at Capital Appreciation joins CNBC Africa for more.
- Advertisement -