Admin
08 Jul, 2019
Holomisa writes to PIC Commission re alleged R2.5m personal loan from VBS to Dr Dan Matjila, former PIC boss
Dear Advocate Lubbe SC DR DAN MATJILA’S EXPECTED TESTIMONY AT THE MPATI COMMISSION: FURTHER GERMANE INFORMATION RECEIVED FROM A WHISTLE-BLOWER I herewith acknowledge receipt of your email, dated 6 July 2019, wherein you informed me that – according to the rules of the commission of inquiry into allegations of impropriety regarding the Public Investment Corporation (‘the Commission’) – I may today be implicated in evidence to be submitted by Dr Dan Matjila, former Chief Executive Officer of the Public Investment Corporation (PIC). I wish to inform the Commission about information that has been provided to me by a whistle-blower regarding an alleged forensic review report (dated 15 April 2019) (‘the report”) as commissioned by the PIC board from Nexus Forensic Services regarding a VBS Mutual Bank investment transaction. 1. According to the alleged report, Dr Matjila, together with the PIC’s former chief risk officer Paul Magula and the head of legal Ernest Nesane received loans from VBS Mutual Bank. The allegations about the loans to the latter two gentlemen have been widely reported on in the media. 2. Dr Matjila has never declared a VBS Mutual Bank loan allegedly extended to him, to the value of R2 456 761.66, as required, which may constitute a conflict of interest and even possible criminal conduct. 3. The term of Dr Matjila’s loan is alleged to be a thirty (30) year period, which raises the questions whether a) the loan was extended at arm’s length and b) such a lengthy repayment period was the standard for VBS Mutual Bank? 4. In terms of the conditions of the loan, it is allegedly unclear whether the loan was intended to ever be repaid, or whether it is/was in fact being repaid. The only way to establish the veracity of this allegation is to scrutinise the dates of disbursement and repayment. 5. If there is any truth in these allegations, it raises serious concerns about Advocate Terry Motau SC’s report called: “The Great Bank Heist”. Why did Advocate Motau’s report omit Dr Matjila’s alleged loan, especially given his position as PIC CEO? 6. Why did Advocate Motua’s report exclusively focus on Messrs Magula and Nesane? Common sense would dictate that Advocate Motau would have declared Dr Matjila’s alleged loan even if no wrongdoing was apparent. 7. The alleged report apparently states that Dr Matjila holds ten directorships, but according to the whistle-blower, around two have not been disclosed as required. 8. As we all know, Advocate Terry Motau’s report revealed that a cash sum of R5 million was apparently “stolen” from VBS Mutual Bank, allegedly to bribe Dr Matjila to obtain his cooperation in facilitating the funding of VBS Mutual Banks’ requirements by the PIC. Famously, the money was reportedly carried by helicopter from Makhado to Lanseria Airport. If the alleged report is anything to go by, one could argue that Dr Matjila had personally benefitted from nearly R7.5 million of VBS Mutual Bank money. 9. Nexus Forensic Services’ alleged report apparently recommended that the PIC board should pursue criminal investigation. If that is true, the question is what has the board done about this recommendation and if nothing, why? Lastly and with respect, given the information the whistle-blower has imparted to me, I wanted to establish whether the Commission is aware of this alleged report and if not, could the Commission make enquiry into obtaining the said report to assist in its investigation. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
06 Feb, 2019
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. Sincerely yours, Mr. Bantu Holomisa, MP President United Democratic Movement
Admin
17 Oct, 2018
UDM welcomes announcement of PIC commission of inquiry
The United Democratic Movement welcomes the president’s announcement of the appointment of Justice Lex Mpati as the head of the commission of inquiry into the allegations of corruption at the Public Investment Corporation (PIC). The inquiry should clean-up the mess at the PIC and get to the bottom of the rot we have seen exposed in the media for quite some time. The pension funds of past and present government employees should be protected from the ruthless sharks that are eating away at their financial futures. We reiterate our call that PIC chief executive officer, Dr Dan Matjila, who played a pivotal role in, for example the Mozambican oil deal, the VBS Mutual Bank scandal, the Ayo Technologies and Sagarmatha Technologies mess, should be suspended with immediate effect, which is in line with international norms and standards. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
04 Sep, 2018
The Public Investment Corporation: concerns regarding time being taken to institute commission of inquiry and the PIC board appointing forensic auditors
Dear Mr President This matter has reference. The United Democratic Movement is very concerned that there is no movement in terms of the appointment of the Public Investment Corporation (PIC) commission of inquiry. Sir, in this matter, we want to remind you that Minister Nene had initially, in his court papers, said that he saw nothing untoward at the PIC. This raised some eyebrows at the time. His lack of action now raises the question as to why Minister Nene is dragging his feet in instituting the inquiry and appointing the commissioners. Our main concern is that Minister Nene, who once was a PIC Chairperson, is acting like a person who may himself, or maybe a family member, have been captured. Regarding Minister Nene’s instruction on a forensic audit at the PIC, the minister has not stated which aspects or transactions such an investigative team will audit. In fact, Sir, the entire matter is shrouded in secrecy. Mr President, we herewith ask that you take this matter away from Minister Nene and appoint the commission yourself. We also ask that you appoint the forensic auditing team i.e. not by the PIC board whose members may be compromised themselves. Kindly advise. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
17 Aug, 2018
PIC commission to start it’s work in “due course”
The United Democratic Movement (UDM) has noted that President Ramaphosa has announced the appointment of a commission of inquiry to probe the Public Investment Corporation (PIC) and the dark cloud of corruption allegations hanging over the institution. It is however frustrating that the names of the chair of the commission and the supporting team, as well as the detailed terms of reference will be announced “in due course”. What does National Treasury mean with “in due course”? They have been saying this for the last three weeks or so; it would appear that this could be months from now, which is enough time for the guilty to send the proof of the misdeeds to the shredder; if it has not happened already. The UDM outright rejects the idea that the PIC board – which includes CEO Dr Dan Matjila who is also under the cloud of suspicion – should be given the task of appointing the forensic company. The board appointing the audit firm is tantamount to a thief appointing his own judge and jury. National Treasury or the commission itself should appoint such a forensic company. To make matters worse, the board has neglected its fiduciary duty by outsourcing the decision to suspend the CEO to the forensic auditors. The UDM reiterates our call that Dr Matjila must be immediately suspended until the commission concludes its work.
Admin
26 Sep, 2017
UDM rejects Government’s attempts to tap into PIC funds to bail out failing SOEs
The allegations that the Ministry of Finance is trying to access Public Investment Corporation (PIC) funds to bail out failing State Owned Enterprises (SOEs) confirm the United Democratic Movement’s (UDM’s) long-held suspicion that the mafia styled ruling elite would, once cash-strapped, extend its grubby hands to workers’ pensions entrusted to them for safekeeping. The true intention of these transactions is not to bail out struggling SOEs, but rather to ensure that there is enough state resources to plunder for those “whose turn it is to eat”! We therefore reject any attempts by government to use PIC funds to fund failing SOEs. Bearing the aforementioned in mind, the UDM believes that steps should be taken to develop a mechanism to protect workers’ assets against abuse and misuse by government. Such a mechanism should, among others, also ensure that workers, as a key stakeholder, have a voice in how and where their assets are invested and accessed. In addition, steps should be taken to restructure the PIC board to ensure that other stakeholders are accommodated and that it is not under the full control of government. We call for the implementation of more checks and balances, with minimal bureaucracy, such as risk mitigation systems and a watertight Code of Ethics. We demand a comprehensive investigation of all transactions since 2009, as we believe that under Mr Zuma, the PIC may have been used as a source of funding for suspicious deals that have nothing to do with growing an inclusive and distributive economy. Statement issued by: Mr Nqabayomzi Kwankwa, MP UDM Deputy President and Chief Whip
