The much-awaited Commission of Inquiry report into allegations of impropriety at the Public Investment Corporation (PIC) has been released by President Cyril Ramaphosa. Photo: Karen Sandison/African News Agency (ANA)
The much-awaited Commission of Inquiry report into allegations of impropriety at the Public Investment Corporation (PIC) has been released by President Cyril Ramaphosa. Photo: Karen Sandison/African News Agency (ANA)

Sekunjalo 'happy' PIC Report made no adverse findings against AYO, related businesses

By Sizwe Dlamini and Ayanda Mdluli Time of article published Mar 12, 2020

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CAPE TOWN – SEKUNJALO on Thursday acknowledged and welcomed the much-awaited Commission of Inquiry report into allegations of impropriety at the Public Investment Corporation (PIC), which has finally been released by President Cyril Ramaphosa.

Sekunjalo spokesperson Mandla Mbusi said in a statement on Thursday that the company was happy that the report made no adverse findings against Sekunjalo, AYO and other subsidiary companies, noting that the report was mostly attributed to the improprieties to the PIC board and executive of the organisation.

“The improprieties are pointing at the poor governance and failure to abide by due process and relevant prescripts.

“We are delighted because we always maintained that Sekunjalo and its businesses acted with integrity and we are moved by President Ramaphosa noting that “the commission showed that the impropriety was worsened by the fact that PIC board was not functioning well, and the board involvement in investment decision compromised their ability to exercise oversight over PIC,” said Mbusi.

The Commission largely attributed improprieties to the PIC's senior management for failure to manage decision-making in a professional and honest manner, and failure to abide by due processes and relevant prescripts. The Commission also made detailed findings against some current and former members of the PIC senior management and board members.

Ramaphosa said the Commission showed that the impropriety was worsened by the fact that the PIC board was not functioning well, and board involvement in investment decisions compromised their ability to exercise oversight over the PIC.

“One of the priorities of this administration is to build a capable, ethical and developmental state. All public institutions need to be held to the highest standards of integrity and accountability, and must effectively and efficiently fulfill their mandates. It was for this reason that I established the Judicial Commission of Inquiry into the allegations of impropriety at the Public Investment Corporation (PIC)," Ramaphosa said in a statement.

Mbusi said contrary to negative reporting about the black-owned business mentioned at Mpati Commission, most of the investee companies were cleared. Among them were Lebashe, Harith, AYO, Sagarmatha, Lancaster, Ascendis Health and Tosaco.

“We strongly believe that Matjila must be granted an apology because among other allegations against him were allegations that he had pressured junior staff to rush certain transactions without proper due diligence. However, the commission found that it was the PIC’s own governance processes that were flawed.

“Sekunjalo, like the various captains of industry, welcomes the outcome of the report and we will further cooperate with the recommendations stipulated in the report, as President Ramaphosa stated that the report is a high-level road map on the way forward and he said different state institutions, including the board, will further communicate the details of the implementations plans,” he said.

We, therefore, want to assure all South Africans that Sekunjalo will be part of this road map, said Mbusi.

BUSINESS REPORT

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