#PICInquiry: AYO Investment Committee was ‘uncomfortable with Hardy and Nodwele’s deals’
JOHANNESBURG - “It is necessary to point out that the deal structures presented by Nodwele who was the Chief Investment Officer (CIO) at the time, were not in line with what we believed to be good practice and posed significant risk to AYO. It became clear that Nodwele was not comfortable interpreting numbers. When this was pointed out to him, he indicated that he required guidance from us regarding the interpretation of financial information”, said Abdul-Malick Salie, who presented testimony at the PIC Commission of Inquiry into improprieties at the Public Investment Corporation (PIC) today, in his capacity as Chief Investment Officer of AYO Technology Solutions Limited (AYO. Simphiwe Nodwele was the previous CIO of AYO.
Salie continued to say that he was uncomfortable with most of the deals that Nodwele and the previous CEO of AYO, Kevin Hardy, presented to the AYO investment committee. Hardy and Nodwele resigned suddenly when asked to submit to an investigation into their dealings, by the Chairman of the AYO board.
Salie concluded his statement by respectfully pointing out ‘that the current subsidiaries and associate companies linked to AYO are strong, cash positive and profitable businesses, with management teams that have years of experience in their respective industries.
"These include Sizwe, Puleng, Kalula, HST, DM, Afrozaar and SGT. I wish to point out that AYO currently provides employment to approximately 1400 skilled employees. On my estimation, the current existing business for a full twelve-month period will deliver R3bn in revenue with an estimated R200 million cash profit, excluding BT and excluding interest. This, supplemented with the current acquisition pipeline and a revitalized BT relationship and current empowerment credentials, can in my view, deliver positive shareholder value”, Salie concluded.