R116m of the PIC’s money to allegedly be spent on UWC student accommodation without due diligence
Dear Honourable Minister Mboweni
REQUEST FOR THE URGENT INTERVENTION ON THE POSSIBLE IRREGULAR FUNDING OF IKHAYA STUDENT ACCOMMODATION (PTY) LTD BY THE PUBLIC INVESTMENT CORPORATION
The above has reference, and I attach hereto relevant documents for your ease of reference.
The referenced documents suggest, amongst others, that:
1. Based on an email dated 4 February 2019 from the Public Investment Corporation’s (PIC) Roy Rajdhar to some George Blackenberg, it appears, that the PIC is on the verge of transacting an amount exceeding R116 million, purportedly for the construction of student accommodation for the University of the Western Cape (UWC).
2. Disturbingly, there does not seem to be an existing approval and due diligence. Neither is there an approval by UWC council. According to the letter dated 30 May 2018, and signed by the UWC Head of Legal Service, such a project would be subject to the approval of the Executive Management, the Council and reported to the Minister of Higher Education. Without confirmation of these provisions, it is surprising that the PIC is on the verge of funding this project.
3. Furthermore, the two registration numbers which are (2007/025898/07 and 2013/144938/07- found in the referenced documents) have been listed under the Ikhaya Student Registration Company and appear to be inconsistent with the company details.
4. According to the attached document, titled “STRICTLY PRIVATE AND CONFIDENTIAL – Indicative Term Sheet Issued by the PIC to the Ikhaya Student Accommodation Proprietary”, signed by the PIC’s Roy Rajdhar (Executive Head: Development Investment) and Rodger Lionel Hendrick, (Chief Executive Office of Ikhaya Student Accommodation), may shed light for your ease of reference.
5. With regard to Rodger Hendricks, it is alleged that he has been sequestrated by a court of law in a separate case dealing with student accommodation services within the Cape Peninsula University of Technology (CPUT). It would be apt to establish, at this time, his alleged historical conduct for the purposes of this investigation in order to provide a character assessment.
6. According to our quick search with the Companies and Intellectual Properties Commission (CIPC), this company include Dennis Henry George, Michelle Xaviera Gabler and Carl Liebenberg as active directors. Find attached the results from CIPC. The inconsistence on the registration numbers referred to above may be clarified by these directors.
Accordingly, I request your good office to:
• Stop any envisaged financial transaction as per the email dated 4 February 2019; and
• Subject the entire transaction to the current PIC enquiry.
I will be pleased to be advised on the steps taken by your office at all material times.
Mr. Bantu Holomisa, MP
United Democratic Movement