South Africa - Pretoria - 17 April 2019 - Naahied Gamieldien at the Public Investment Corporation (PIC) Commission of Inquiry. Picture: Jacques Naude/African News Agency(ANA)

PRETORIA – JSE-listed AYO Technology Solutions is in a growth phase and is investing in staff and other costs for growth, the Commission of Inquiry into alleged improprieties at the Public Investment Corporation heard on Wednesday.

AYO’s executive of business transformation Naahied Gamieldien was testifying under subpoena to the commission led by retired Judge Lex Mpati, assisted by Gill Marcus and Emmanuel Lediga, where she explained the company’s profits.

She said in her testimony before the commission that there were various one-off costs amounting to R27 836m also included in the profit before tax number and mainly attributable to the listing.

“In the financial statements, the profit before tax amounts to R195 997m and the interest is reflected as R225 200m. Once the interest is added back, the company appears to have made a loss of R29 203m. In short, I agree that AYO showed profitable results mainly due to the interest earned on share issue proceeds and if this was excluded AYO would be loss-making,” she said.

Gamieldien said as at the date of listing and as disclosed in the pre-listing statement (PLS), AYO owed R80m to African Equity Empowerment Investments (AEEI). This amount was repaid to AEEI using funds generated from the listing.