Ayo Technology Chief Investment Officer, Abdul Malick, overvalued the company during the period in which the Public Investment Corporation (PIC) invested R4.3 billion in the company. Former Chief Investment Officer of Ayo technologies, Siphiwe Nodwele says the company was worth R700 million and not R14.8 billion as stated by its executives.
Nodwele is testifying before the Commission of Inquiry into impropriety at the PIC. He says he and another Ayo Executive, Kevin Hardy, were ill-prepared for presentations at the PIC and could see that despite the deal lacking some information, it was a foregone conclusion that the it would go through.
“Given what the company was doing at the time and given the revenue the company had earned the profit after tax, a billion would have been extreme. I suppose the rational was that you were going to acquire a bunch of companies with that money but in terms of what the company was worth at that date, I would say seven hundred million rands and that’s just doing sums at the top of my head ,” says Nodwele.