CAPE TOWN – The Information and Communication Technology Union (ICTU) has said the move by the Public Investment Corporation (PIC) to liquidate a fully operational entity, albeit loss-making, is almost unheard of.
The PIC has invested significantly in companies related to Sekunjalo Investment Holdings (SIH). However, of late the PIC and SIH are at loggerheads over various agreements and processes.
The PIC has gone as far as filing an application for the liquidation of Sekunjalo Independent Media (SIM), which owns Independent News and Media SA (INMSA).
“The best practice is that investors back their investment and management with further investment should the company face challenges and what PIC has done is at odds with common practice,” said spokesperson Thabang Mothelo.
A process in these circumstances would have been better served by appointing a business rescue manager in terms of the provisions in the Companies Act of 2008, said Corrie Kruger, an independent analyst.