PRETORIA – Director of Harish and Lebashe Tshepo Mahloele said on Tuesday that the seed capital loan of about R22 million from the Public Investment Corporation had been fully repaid, with interest.
Mahloele, who was testifying before the Judge Lex Mpati-led PIC Commission of Inquiry, said nevertheless, the PIC retained its 46 percent stake to this day without at any time being exposed to any risk on its own account.
He said the PIC obtained this substantial stake in Harith Fund Managers (HFM), the largest single shareholding, since it had provided the seed capital loan in an amount calculated at just less than R22m, excluding interest, as the initiator of the concept, it had a material interest in the overall success of the Pan-African Infrastructure Development Fund (PAIDF).
“Far from our ‘fleecing’ or ‘Iooting’ the PIC, as Mr (Bantu) Holomisa has irrationally alleged, the PIC has benefitted and continues to benefit by way of its large equity stake in HFM,” said Mahloele.
Mahloele also submitted to the commission that the investors also envisaged that a portion of the fund managing company would belong to management for purposes of incentivisation through an employees’ equity trust.