PIC to write off R1bn investment in Sunrise Energy?

Albertinah Kekana is a Non-Executive Director at RBH.

Albertinah Kekana is a Non-Executive Director at RBH.

Published Oct 29, 2021


BUSINESS Report (BR) is investigating a loan by the Public Investment Corporation (PIC) into Sunrise Energy via the Mogs Mining Services Group (Mogs). The PIC’s loan to Mogs is over R1 billion – indirectly to Sunrise Energy. This loan has not been serviced in over five years, according to sources.

Mogs is a black-owned provider of value-added services and products.

PIC spokesperson Sekgoela Sekgoela said the loan was serviced, but could not provide any evidence by close of business on Thursday on how it was serviced.

Sunrise Energy has also been in receipt of a loan from the Industrial Development Corporation (IDC) to the amount of R1bn in 2011.

BR questions why Sunrise Energy was not part of the Mpati Commission of Inquiry, when it appears to be suspicious as to how the loan was acquired.

BR asked Sekgoela, if the former PIC chief financial officer, Albertinah Kekana, arranged the loan to Sunrise (or Mogs). The PIC spokesperson denied this. Is it only coincidental that Kekana was appointed as the chief executive and chairperson of Mogs, one year later?

According to the Mogs website, Kekana was appointed chief executive of Royal Bafokeng Holdings in November 2012. She was previously the chief financial officer of the PIC and has extensive asset management, investment banking and business leadership experience. She is currently the Mogs chairperson.

The Sunrise Energy shareholding structure is as follows: Mogs Oil & Gas Services: 60 percent, IDC 31 percent and Ilitha Group 9 percent.

Mogs is majority, 51 percent-owned by Royal Bafokeng Holdings, the community investment company owned by the Royal Bafokeng Nation Development Trust. In 2016, the PIC, through the Kuseni special-purpose vehicle, acquired a 49 percent stake in Mogs.

The current chief executive of Sunrise Energy, Pieter Coetzee, leaves at the end of the year.

BR sent questions to Coetzee about whether it is true that his contract with Sunrise ends in December?

Were you fired, or are you taking early retirement?

His response:

“Further to your rather rude enquiry below, I will be retiring with the full support of Sunrise Energy after many successful years in leading the business.”

Sunrise Energy chairperson Kekana released a statement to the effect on October 12 that said: “Rumours are abounding that this was not a voluntary departure ...”

Hence, we ask, are there still dots that need connecting?

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Adri Senekal is the Editor in Chief of Business Report.


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