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AYO Technology Solutions announced through a statement on Thursday that its board resolved to sue the Public Investment Corporation for billions over the fallout from the latter’s investment in the business, which led to an ongoing commission of inquiry.
The company, which falls under Iqbal Survé’s Sekunjalo consortium, is accused of inflating its value to draw an investment worth R4.3bn from the PIC, which is the largest asset manager with a portfolio of assets worth over R2trn. AYO chair Wallace Mgoqi said through the statement that the company was innocent of all allegations leveled against it during the commission.
"The regrettable comments made by PIC chairman, Mr Mondli Gungubele, and various other officials of the PIC that are now permeating the public domain, have severely damaged the reputation of AYO. In so doing, the PIC has prejudiced the business of AYO, and its own investment into the company," the statement said.
The statement said the PIC chairman and officials made remarks about AYO based on their own internal processes, which have nothing to do with AYO.
This resulted in AYO’s key relationships with customers, partners, suppliers and other important stakeholders being negatively affected, the statement said.
"AYO urges the PIC to use due process to put its case to the test and not try the company through the media and public forums. AYO welcomes the opportunity to defend itself and remains confident the outcome would be in AYO’s favour," the statement said.
Deon Botha, Head of Corporate Affairs at PIC, confirmed the summons from AYO. He said the claim by the PIC is based on two alternative causes of action, which were misrepresentation on the part of AYO when the transaction was concluded and legality.
"As relief, PIC has tendered back the shares bought from AYO in return for repayment of the invested amount of R4.3bn. The summons were served on AYO’s registered address on the same day by the sheriff. Further and by agreement a copy of the summons was delivered to AYO’s attorneys," said Botha.
Following President Cyril Ramaphosa's Cabinet announcement on Wednesday evening, David Masondo, as the new deputy minister of finance, is likely to take on the position of PIC chair.
