South Africa - Pretoria - 16 July 2019 - Former PIC CEO Dan Matjila testifies at the PIC Commission of Inquiry. Picture: Oupa Mokoena/African News Agency (ANA)
JOHANNESBURG -  Former chief executive of the Public Investment Corporation (PIC), Dr Dan Matjila, on Monday went into detail about the asset manger’s investment into Erin Energy, which he described as regrettable and poor.

The former PIC boss was testifying at the PIC Commission of Inquiry led by retired Supreme Court judge, Lex Mpati and investment expert, Emmanuel Lediga.

In his testimony, Matjila confirmed that the PIC had lost US$333 million (around R4.6 billion) in the Erin Energy investment.

The US-based oil company, which later filed for bankruptcy, had owned an oilfield in Nigeria.

Matjila said the invested funds were just "a fraction of the percentage" of the total PIC portfolio, which currently stands at R2 trillion.

Breaking it down, Matjila revealed that the investment was $270m via the listing of CAMAC, on the Johannesburg Stock Exchange (JSE). “The PIC would own 30% of CAMAC Energy and shares, and would have a board seat and, a presence on the audit and risk committee,” he said.

Matjila also revealed in another deal, that the Daybreak investment was executed by Kholofelo Maponya, a man that Matjila described as having, "no respect for governance."

Mapnoya, a Johannesburg businessman who once proclaimed that he is itching for his day at the PIC commission of Inquiry, after being implicated in soliciting a R95 million origination fee from SA Home Loans, was blasted by Matjila.

Matjila said that under the leadership of Mr Maponya, there was very little respect for good governance and SA Home Loans took big strain, to the point of near collapse.

Matjila was asked if Maponya’s poor governance was picked up in due diligence, he replied, no.

Matjila then explained that the PIC had to intercede to save its investment in the portfolio . He also relayed how they had removed Maponya and replaced him with Tinus de Jonge, whilst looking for a more suitable individual, who be able to normalize operations.

Matjila's testimony continues.