Former PIC CEO Dan Matjila testifies at the PIC Commission of Inquiry. Picture: Oupa Mokoena/African News Agency (ANA)
Dr Dan Matjila, former CEO of the Public Investment Corporation (PIC), on Thursday, detailed how the transaction between the PIC and Independent energy company, Tosaco, unfolded, while he was the chief executive officer at the state-owned asset manager.

Matjila told the Commission of Inquiry into allegations of wrongdoing at the PIC, that concerns had been raised about the transaction, particularly over the involvement of businessman Lawrence Mulaudzi, who was a beneficiary in the 2015 deal.

Matjila said he met Mulaudzi in May of that year, where the businessman informed him about an investment opportunity. Matjila said after the meeting he forwarded information on Tosaco to the head of impact, Roy Rajdhar, for review.

"The deal was funded by a GEPF loan for acquisition of Tosaco," adding a UIF loan had also been secured, as the deal had a high potential of creating jobs.

However, Matjila highlighted that discrepancies were flagged, when it emerged that newly formed company Kilimanjaro Capital (Kilicap), which Mulaudzi was a director of, was pushed through the PIC investment processes so that it reached phase two of the Tosaco bidding process, despite not having an extensive trading history.

He said Mulaudzi at one stage, had hounded him for a binding letter of support in the transaction but he refused to provide him with one. He also denied suggestions made by Mulaudzi in his testimony, that he had been allegedly forced to merge KiliCap with another company, Sakhumnotho, run by Sipho Mseleku. He said the two businessmen met with him in July 2016 to discuss how to combine the two companies.

"The merger greatly increased the newly formed company's prospects of success in being awarded the tender and that is why Mulaudzi agreed to the merger," added Matjila. 

After the merger, a new company by the name of Kisaco emerged and the transaction fee for the deal is alleged to have cost R100 million.  
The Commission adjourned early.

Next week, Matjila is also expected to shed light on more transactions involving Ascendis, S&S Refinery, Steinhoff International Holdings and Lancaster.