Royith Rajdhar of Impact Investing testifying at the PIC commission of inquiry on Wednesday. Image: Moneyweb
This was revealed by Royith Rajdhar, executive head of Impact Investing, during his testimony at the PIC commission of inquiry on Wednesday. He was unpacking the PIC’s decision to invest R1.2 billion in poultry producer Daybreak Farms in 2015. The business became technically insolvent just six months after the PIC’s investment.
“These amounts were not entirely for the benefit of Maponya, but [were] total amounts in respect of consortiums in which he is a controlling shareholder,” said Rajdhar.Assistant commissioner Emmanuel Lediga said that based on previous groups that had received funding for multiple transactions from the PIC, and the investments received by MMI, people could suspect the PIC of favouritism.
The question of favouritism when it comes to approving investments was raised by United Democratic Movement leader Bantu Holomisa in relation to the Lebashe Investment Group and Harith General Partners.The entities are led by former PIC executive Tshepo Mahloele and former PIC chairperson Jabu Moleketi.
Holomisa is right. For a selected few, the PIC appears to be an open ended piggy bank.