Former PIC Executive Dan Matjila Signed a Deal to Make R700 Million Debt to Pensioners 'Disappear'
- A loan of over R700 million that came from the Government Employees Pension Fund may never be repaid
- This is partly due to an agreement that was signed by former Public Investment Corporation's executive Dan Matjila and Sekunjalo Independent Media
- The agreement which seems to be permanent indicates that the PIC may not launch legal proceeding against SIM to claim money loaded to the company
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JOHANNESBURG - The Public Investment Corporation (PIC) has legal proceedings against Iqbal Survé's Sekunjalo Independent Media (SIM) for R709 million owed to the corporation.
Court documents have revealed that the money owed to PIC technically belongs to Government Employees Pension Fund, a fund that is managed by PIC, according to Fin24.
Source: Getty Images
It has also been revealed that by now, the amount owed to the Government Employees Pension Fund, which is handled by the PIC, would easily be more than R800 million in interest earned since 31 May 2020.
A shocking revelation in the documents, however, showed that SIM does not recognise the money it owes to the pension fund largely thanks to an agreement that was signed between the company and former executive Dr Dan Matjila, according to a report by the Daily Maverick.
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Matjila secretly signed a deal with SIM which absolved the company of any debt which has meant that the PIC has little to no recourse available in retrieving the funds owed to the pension fund.
The deal which was signed in December 2019 states that PIC will not be able to make claims of any amount owed to it by SIM. In addition to this, the agreement includes amounts owed at the time the agreement was signed as well as future monies owed.
Furthermore, the agreement signed by Matjila and SIM seems to be permanent and has blocked the PIC from instituting any legal action for the money owed for as long as the company is insolvent. The only way the PIC can get the money owed to it is if SIM is able to become solvent again.
The PIC instituted legal action to have the Subordination Agreement signed by Matjila and SIM overturned, indicating that at the time the agreement was signed Matjila acted in favour of SIM and not the pension fund.
Dan Matjila expected to expose political interference at PIC Inquiry
Briefly News previously reported that Dr Dan Matjila is set to testify before the PIC Inquiry, signalling that the Commission is drawing to a close.
The former chief executive of the asset manager is expected to explain how he was pressured into deals that went against the entity's policies, as per his prepared statement.
President Cyril Ramaphosa has charged the inquiry with looking into the entity, following e-mails implicating powerful members of the PIC board, including ex-deputy finance minister, Mondli Gungubele.
Non-executive director, Sibusiswe Zulu, and love interest, Lawrence Mulaudzi, who reportedly benefited through transactions involving Zulu, were also implicated, reports IOL.
Source: Briefly News
