The controversial public investment investment fund in Ayo Technological Solutions was a "inevitable conclusion" with former CEO Dan Matvilla, using his authority to reconsider concerns about the deal, according to evidence heard by the PIC Survey Investigation Commission.
Assistant portfolio manager Victor Session gave an overview of the process leading to investing in the firm associated with businessman Iqbal Surve, explaining in detail how the in-depth analysis processes leaned in favor of the firm, and testified that Mathela had been harassed by managers to see the deal through.
From an "unreasonably short period of time" to process the valuation of the IT group, so as not to be allowed to negotiate R43 for the shares of the initial public offering of stock price, Blue said the December 2017 investment in AYO was full of irregularities .
He testified on Wednesday that Matyala signed an irrevocable IoO contract and ordered the general manager of the listed shares to co-sign it, without the approval of the PIK Portfolio Management Committee (PMC).
"I thought the signing of a subscription agreement was very irregular, because I've never seen it happen before and the PMC has not yet approved the AYO transaction," he said.
Seani said that he and his colleagues expressed concern about the signing, but Matyala "did not surpass".
He also recalled the occasion about the day of signing the subscription contract when red flags were raised and Matyala said something to the effect: "I will use my authority as the executive director for signing the AYO Subscription Agreement and the decision will be ratified at the next meeting of the PMC ".
Sinni and Fidelis Madavo, executive director of PIC investment, were suspended last week after a judicial inquiry into the controversial deal.
"Dictates to us"
Senny told the committee that he felt that AYO dictated the conditions for the PIC, and not vice versa.
"AYO approached us with a fixed R43 per share that we were allowed to negotiate. When we challenged the R43 valuation, we were told that the R43 could not be changed."
He said both his portfolio manager and general manager agreed with him when he said he believed the R43 per share was excessive.
In its sole statement on the PIC investigation so far, AIO praised the investigation, criticizing the media for "negative and defamatory reporting". The IT company's board of directors said on Thursday that it noted with concern "ongoing negative reporting and speculation about inadequate and unethical behavior expressed by certain media entities."
& # 39; Good friend & # 39;
Assistant Commissioner Emanuel Lediga asked Sini why she thought that Matula had a decision to push through an agreement with Ayo. Seani said that, according to him, this is based on the relationship that has emerged between Matvilla and Surve.
Seani said he believed that with the expansion of the investment in Ayo, Matila aids in Surve. He said Survé already had a loan of about a billion Rand with the PIC, which he struggled to service because he was supported by a company that fought.
He also said that the PIC had investments in another company related to Survé – Sagarmatha – "it would solve many problems …"
In April 2018, Sagarmata Technology was informed by JSE that it could not enumerate on the local stock exchange because it did not provide accurate financial reports on time. The company also addressed the PIC for funding.