Public Investment Corporation Inquiry: PIC blew billions on ‘connected elite’, says former executive

The PIC recklessly invested tens of billions of rands in deals that benefited the connected elite under former CEO Dan Matjila, the institutions former head of risk and compliance Paul Magula told the PIC Commission of Inquiry in Tshwane on Monday.

Magula said the PIC ignored warnings about investing R9.3-billion in former trade unionist Jayendra Naidoos company Lancaster, which was acquiring shares as a BEE partner in Steinhoff in 2017. In just five months, he emphasised, the PIC had to impair up to R5-billion related to the deal as Steinhoff collapsed.The loss suffered amounts to reckless investment decision making to enrich one individual.

The PIC on Sunday said it is taking steps to recover the R4.3-billion invested in Ayo, where it bought shares at a price considerably higher than the company was worth.donated millions to former president Jacob ZumaMagula described an environment where Matjila and Matshepo More, the current acting CEO and Chief Financial Officer under Matjila consolidated power at the R2-trillion asset manager and sidelined their enemies.

The PIC has a whistleblower hotline but according to Magula the company was violating its own regulations and the law. He said Matjila demanded to see the various complaints, including those against him.That year Matjila and More led an effort to uncover the anonymous whistleblower James Nogu who had e-mailed employees detailing various allegations of impropriety against senior officials, including the then-CEO.

Trixasis1 gregnicolson you just cant trust these people 🤪🤪🤪

gregnicolson This surely must be almost the final nail in the coffin for the idea that “BEE benefits the poor”. PICInquiry

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