Africa's biggest asset manager, the Public Investment Corporation (PIC), cannot explain why and how it invested almost R4 billion into a mysterious oil company that has links to the ANC and Jacob Zuma. There are no documents to be found.
The Public Investment Corporation (PIC) has no documents to explain exactly why and how it invested a massive amount of money into an obscure oil company that can be linked to Jacob Zuma and the ANC.
BusinessLIVE reports the PIC invested a whopping $270 million (about R3.9 billion) into a little-known company called Erin Energy.
The company was founded by Kase Lawal, a Nigerian businessman and was initially called Camac Energy.
Lawal was an ANC donor and even accompanied Zuma when he was the receiver of an honorary degree from Texas Southern University, according to Mail & Guardian.
No documents could be found to support the PIC's reasoning for investing in Erin Energy.
This is according to evidence at the Mpati commission of inquiry into governance failures at the PIC.
Jannie Lubbe, evidence leader, said:
"We have been requesting information from the PIC but to date, we have received no documentation or minutes authorising the investment of $270 million."
Briefly.co.za gathered that this is the latest example of the alleged disregard for governance standards at the asset manager under previous CEO, Dan Matjila, who resigned in 2018.
There is a long list of controversial transactions that have been looked at by the Mpati commission - which was established by President Ramaphosa to investigate the PIC.
Some of these investments include those made to Total South Africa, Iqbal Survé’s Ayo Technology Solutions, S&S Refinery in Mozambique and SA Home Loans.
Furthermore, it is reported that the PIC issued a guarantee for a R1.44 billion in order to facilitate a loan for Camac Energy from Mauritian Commercial Bank. This after it was advised not to do so.
The company eventually ran into trouble and it was suspended from trading shares in the New York Stock Exchange in 2018. Soon after, the JSE did the same.
Bankruptcy proceedings have since been put into action.
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