PIC says it will recover R4.3bn investment in Ayo

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As it was already engaged in a process to recover the money, the Public Investment Corporation approached the court to ensure that it is not in breach of the Companies Act

The Public Investment Corporation says it has asked a court to set aside the compliance notice it received from the Companies and Intellectual Property Commission ordering it to recover the R4.3bn it invested in Ayo Technologies.

This valuation, which was so out of proportion to the company’s turnover, is also what the caught the attention of the CIPC. In the articles Ayo states that it has launched its own court action to have the compliance notice set aside. The articles however quote extensively from the PIC’s court papers. This, the PIC said, gives readers the impression that Ayo and the PIC are collaborating to have the notice set aside.

“The PIC and CIPC agree that the deadline set by CIPC in its compliance notice, which ends on March 14 2019, does not give the PIC sufficient time within which to undertake the necessary legal steps to implement the recovery of any losses it may have suffered in relation to the Ayo transaction.

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