PRETORIA – The Public Investment Corporation (PIC) greatly benefits, without any risk at all from its stakes in Harith Fund Managers and Harith General Partners, director Tshepho Mahloele said on Tuesday.
This was part of Mahloele’s testimony at the PIC Commission of Inquiry, where he said described testimony submitted by the leader of the United Democratic Movement, General Bantu Holomisa, as entirely nonsensical.
“If anything, the PIC greatly benefits, without any risk at all, from its stakes in HFM and in HGP,” said Mahloele.
He said the PlC’s exposure was limited to its seed capital loan. However, the total benefit to the PIC of its 46 percent shareholding in HFM, as at May 2018, was in the sum of almost R96 million.
Mahloele also told the commission that as far as the Pan-African Infrastructure Development Fund (PAIDF) was concerned, the intention was to raise a $1 billion (about R14.06bn at current exchange rates) fund after a period of 18 months had been spent on fundraising on the continent and internationally.
“This is what the seed capital was spent on, in addition to all other set-up and related administrative costs. The loan was paid back to the PIC within two years, with interest and costs.
“By September 2007, HFM had secured $625 million for the PAIDF, thus becoming the first 15-year infrastructure fund of its size and scope ever to be established in Africa. Fundraising, especially for a new fund in Africa, pursued by a small team lacking any real funding track record, proved to be a complex and lonely task, and it required enormous resources of time, persistence, negotiation skills and faith,” he said
Mahloele said the success in raising the fund was itself a critical milestone and one of which all involved are justifiably very proud.
In essence, it resulted in the PAIDF pioneering entirely new ground on the continent that opened the way for the other numerous Pan African Infrastructure Funds now available in Africa, he said. By July 2009, the Fund had its final close with committed capital in the amount of $630 million.
BUSINESS REPORT ONLINE