PIC liquidated stocks to finance R4.3bn Ayo investment

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Gaanwe Adams, the portfolio manager of listed investments, told the PIC commission she and two of her direct line managers, received an email from former CEO Dan Matjila “which said we should create liquidity to settle the subscription of Ayo shares”.

Public Investment Corporation shares in companies such as Anglo American were sold in order to free up funds to invest in Ayo Technology Solutions.

Gaanwe Adams, the portfolio manager of listed investments, told the commission she and two of her direct line managers — Lebogang Molebatsi and the executive head of listed investments Fidelis Madavo — received an email from former chief executive Dan Matjila “which said we should create liquidity to settle the subscription of Ayo shares”.

Matjila made the request on December 19 2017, just days after he had signed an irrevocable subscription agreement binding the PIC to invest in Ayo. This was despite the fact due diligence had not been completed and the relevant portfolio committee was not given the opportunity to approve the transaction.

However, Matjila’s first email instruction sent to Adams’s superior had detailed that liquidity should be created “by selling Anglo only”.Adams will furnish the commission with more details at a later stage.

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Matjila to be held accountable for Ayo Technology debacle: Molebatsi - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The general manager for listed equities at the PIC, Lebogang Molebatsi, told the commission of inquiry in to the PIC that he believes former CEO, Dr Dan Matjila should be held accountable for the Ayo Technology debacle
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