South Africa: Custodian of Government-Worker Pension Money Was Blindsided By PIC's R4.3 Billion Ayo Deal

analysis

Abel Sithole, the principal executive officer of the Government Employees Pension Fund, said the Public Investment Corporation didn't involve or inform it when it made an investment in AYO Technology Solutions in December 2017.

The Government Employees Pension Fund (GEPF), whose R1.8-trillion of government-worker pension funds are managed by the Public Investment Corporation (PIC), has suggested that it was blindsided by the fund manager's decision to invest a cool R4.3-billion in AYO Technology Solutions in December 2017.

Abel Sithole, the principal executive officer of the GEPF, testified on Monday 15 July at an inquiry into governance issues and impropriety at the PIC that the fund manager didn't involve or inform it when it made an investment in AYO.

AYO is majority-owned by Sekunjalo Investments, which in turn is owned by Iqbal Survé, who is also the chair of the Sekunjalo Group.

Sithole said the PIC, whose biggest source of funds is from the GEPF, didn't highlight the AYO investment in its subsequent reporting to the GEPF.

His testimony is another indication that the PIC waived the necessary due diligence and consultative process on some investments, plunging the fund manager deeper into governance scandals. The PIC's investment in AYO is one...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.