South Africa: Ayo's Last Stand - PIC 'Should Have Read the Fine Print'

analysis

Technology firm warns of its 'imminent demise' if the PIC's R4.3bn claim succeeds - but finds it hard to answer some allegations.

Iqbal Survé's controversial Ayo Technology Solutions is fighting for its life in the Western Cape High Court.

After seeking an extension last month, Ayo has finally filed its defendant's plea to the Public Investment Corporation's (PIC) bid, launched in May, to reclaim the billions it invested in the company in December 2017.

PIC v Ayo_copy of Issued Summons and Particulars - 29 May 2019

Defendants Plea 5 August 2019

If successful, the claim would mean "the inevitable and imminent demise of Ayo", reads the plea filed on 5 August but not previously made public.

That is probably an understatement, considering that the PIC is claiming back R4.3-billion plus interest at the rate of 10.25% per annum starting 22 December 2017. That is much more than what Ayo has lying around. The whole company is worth less than R3-billion on the JSE.

The PIC has two main, alternative arguments for scrapping the investment and returning the money. Ayo has two counter-arguments that on the face of it are not altogether outlandish. More interesting, though, is not what is said,...

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