PRETORIA – Harith Fund Managers (HFM), was established to exclusively manage the Pan-African Infrastructure Development Fund (PAIDF), its director Tshepo Mahloele said on Tuesday.
Mahloele was testifying before the Commission of Inquiry into alleged improprieties at the Public Investment Corporation (PIC), where he said PAIDF was never intended to be a public-sector led initiative.
“On the contrary, the investors agreed to invest in the PAlDF expressly on the basis that they would not be subject to a fund governed by the strictures of the Public Finance Management Act (PFMA), and that they themselves would have an equity stake in the management company, and therefore the right as shareholders to appoint directors to its board.
“The whole idea was that the investors themselves would be able to determine the progress of the management company and the manner in which, their own funds were to be dealt with,” he said.
Mahloele told the commission that during early 2008, there were indications that, despite what investors had been led to believe, the PIC intended to remain the sole shareholder of the management company.