Photo: Simphiwe Mbokazi.African News Agency (ANA)
Photo: Simphiwe Mbokazi.African News Agency (ANA)

AYO responds to CIPC 'directive'

By Staff Reporter Time of article published Feb 26, 2019

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JOHANNESBURG - The JSE listed company, AYO Technology, has responded to the front page article of the Business Day on Tuesday morning. 

AYO said in a statement, " AYO is perturbed to learn through a newspaper article that the Companies Intellectual and Property Commission (‘CIPC’) had directed the directors of the Public Investment Corporation (‘PIC’) to recoup the PIC’s investment in AYO. It is concerning that a newspaper has been informed of such a letter prior to AYO having been appraised of it.  We believe that such an action on the part of CIPC is highly regrettable, if not irresponsible."

The statement continued, "We are mindful of the administrative functions of CIPC, which must comply with the promotion of administrative justice. AYO believes that CIPC, by failing to inform and provide it with a copy of the alleged notice to PIC , it has acted contrary to the provisions of the Promotion of Administrative Justice Act, 3 of 2000.  Of more concern, it appears from the Business Day report that CIPC relies on a set of data, which is factually incorrect. Should CIPC however have engaged with AYO, the company would have provided the relevant facts, which in any event, are available in the PLS of AYO, published in April 2017.   The PLS is a widely publicised public document."

AYO said that the figures quoted in the Business Day article attributed to CIPC, are grossly incorrect.  

"The article refers to AYO never having had revenue of more than R12million. The facts are that AYO historically, is an ICT investment holding group with underlying investments and subsidiaries.  For the record, the audited financial statements of AYO for the 12 months ended 31 August 2018 wherein AYO generated revenue in excess of R638 million for such financial year. This, we trust, will put paid to the lie printed in Business Day," AYO said in the statement.

"If the article is indeed quoting CIPC correctly, we respectfully submit that CIPC has not applied its mind to the matter.  This we believe, is a gross injustice that has the effect of causing the company significant reputational harm. AYO notes that CIPC’s decision is unprecedented.  AYO re-asserts that the investment the PIC made into the holding group during the listing, remains sound.  AYO has made significant strides forward with an established solid base, along with a number of good acquisitions and investments.  AYO regrets CIPC’s action and advises that it is ready to engage with CIPC on the matter," the AYO statement concluded. 


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