#PICInquiry: Holomisa sees cartel behaviour among investment advisors, asset managers
PRETORIA – The Commission of Inquiry into alleged improprieties at the Public Investment Corporation (PIC) needs to investigate the alleged role of investment advisors and asset managers, especially those outside South Africa.
This was the submission of the leader of the United Democratic Movement (UDM), General Bantu Holomisa, who also lamented that the commission did not have enough time to get to the bottom of the PIC’s operations.
Holomisa said: “An area of investigation that the Commission should be interested in, is the alleged role of investment advisors and asset managers, especially those outside our borders. Such companies/persons appear to include Sao Capital (of Nana Sao from Ghana, based in London), Kurhisani (of Kingdom Mugadza from Zimbabwe) and Harith/Lebashe (South Africa), headed by the former deputy minister of finance and PIC chairperson, Jabu Moleketi, and Mr Tshepo Mr Mahloele).
“When one looks at the allegations that these companies/persons had (or have) easy access to PIC funds, one would conclude that this has all the earmarks of a cartel.”
He said the Commission would also be well advised to check whether any dealings with these individuals or companies were in line with standard market practice as there were allegations that they were paid exorbitant consultancy fees.
“One other transaction that needs careful scrutiny, is the Pan African Infrastructure Development Fund I and II (PAIDF). Where are these monies invested? Are these deals with other countries, or private individuals?
“Where are its assets registered and how much are they worth? ln toto, how is the so-called investment, that constitutes R8.2 billion in today’s value, performing?” asked Holomisa.
BUSINESS REPORT ONLINE