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The judicial commission of inquiry into state-run asset manager the Public Investment Corporation will resume on Monday morning, after hearing evidence last week from a number of board members, including PIC chairperson and Deputy Finance Minister Mondli Gungubele.
The PIC manages assets worth more than 2trn, with its biggest client being the Government Employees' Pension Fund.
The inquiry, which began its work in January, is chaired by former president of the Supreme Court of Appeal Justice Lex Mpati. It is investigating allegations of impropriety and maladministration at the PIC, including matters of governance and certain controversial investment decisions.
Last week, the Companies and Intellectual Property Commission ordered the PIC directors to recover the R4.3bn the corporation invested in AYO Technology Solutions in 2017.
AYO is linked to businessman Iqbal Survé, the executive chairman of Independent News Media, who holds an indirect stake in AYO through JSE-listed African Equity Empowerment Investments.
The CIPC notice, issued on February 21, stated that the corporation did not act in good faith and in the best interests of the company when it chose to invest R4.3bn in AYO.
AYO, in response, said the notice was based on "incorrect information".
According to the CIPC notice, AYO must pay the back the funds - including interest that may have accrued on the investment - within six months.
Witnesses
The list of witnesses who will give evidence this week has not been released, following death threats against employees who have earlier testified before the inquiry.
According to the commission’s terms of reference, the inquiry is also tasked with establishing if media reports of impropriety against senior executives that emerged in 2017 and 2018 contravened any legislation and policy of the firm, resulting in undue benefit for any director or their associates.
The whole PIC board resigned in early February. Finance Minister Tito Mboweni has not yet appointed a new board.
The board has been hit by a series of anonymous emails from an unknown source, which contain claims of corruption against some of its members, including Gungubele.
On Tuesday, board member Dudu Hlatshwayo said the emails from a so-called whistle blower, known as James Nogu, created a climate of distrust and fear among board members when they first surfaced in August 2017.
"Low staff morale and lower levels of productivity could be felt throughout the organisation when James Nogu arrived," said Hlatshwayo. "Board meetings' centre of focus was on the allegations and how to deal with them."
The commission has since tabled its interim report before President Cyril Ramaphosa. A final report with recommendation is expected by April 15.
