Matjila says PIC is a ‘tempting piggybank’ for many

Former Public Investment Corporation CEO Dan Matjila has wrapped up his testimony for the week.

On Thursday, Matjila set the record straight on issues relating to the Total South African Consortium transaction and gave his views on why politicians get involved at the PIC.

He expressed his views on why the PIC management has been in embroiled in a tug-of-war with politicians. He says the corporation a tempting cash-cow because it has been well run.

“The core issues concerning the PIC centres on governance and the constant conflict between functional issues and political motivations with funds exceeding R2 trillion. The PIC is a very tempting piggybank for many.”

Matjila continued his testimony detailing the TASCO transaction, particularly because it raised concerns that Lawrence Mulaudzi, director at Kilimanjaro Capital, was one of the beneficiaries.

Matjila said before the TASCO transaction, he had never met Mulaudzi. He also said that the deal followed the official PIC appraisal process and there was nothing irregular concerning that transaction.

“I met with Mr Mulaudzi in early May 2015 when he introduced the TASCO opportunity. I gave him a rundown of the PIC processes and most importantly that he should provide the PIC with an information memorandum on this opportunity.”

In 2015, Mulaudzi’s KiliCap approached the PIC for funding to acquire a BEE stake in TASCO for R1.7 billion.

Mulaudzi told the commission in March that during the application process, Matjila had informed he wasn’t the only one bidding for that stake.

Sakhumnoto founded by Sipho Mseleku was also interested in the transaction. It emerged that Matjila suggested the two entities form one consortium.

Matjila denies this claim.

“On 30 July 2016, both Mr Mseleku and Mr Mulaudzi separately came to me to negotiate binding letters of support. Whilst they were there, I introduced them to each other and left them alone to discuss matters where after both voluntarily agreed to the merger of their respective companies.”

Matjila is set to continue with his testimony on Monday.