PIC Board statement on the PIC settlement with AYO technologies

24 April 2023

The Board of Directors of the Public Investment Corporation (PIC), at its ordinary meeting held on 17 April 2023 held extensive discussions about the settlement with Ayo Technology Solutions Limited (Ayo) that was made an order of the court on 24 March this year. The board applied itself primarily around the soundness of both the commercial value as well as governance concerns.

The Board expressed its concern to the PIC management team for neglecting to timeously inform the Board of its intention to settle in line with the PIC governance processes.

The company’s Delegation-of-Authority affords management the discretion to settle disputes with defaulting investee companies. In doing so, the PIC’s management has a duty of care to protect the company’s integrity and reduce the risk of reputational damage. This includes the responsibility of management to timeously inform the Board of intended settlements.

Whilst deeply concerned about management’s handling of the governance processes, the Board believes the Ayo settlement, which is an Order of the Court, is justified as a good commercial decision. This settlement seeks to recover money from a questionable investment, salvaging value for its client and its beneficiaries, whilst ensuring that Ayo Technologies remains a going concern.

Informed by its deliberations on the implications arising from this situation, the Board has cautioned the PIC management and the Board will continuously engage the management team to improve the governance processes.

“The PIC Board, in executing its fiduciary duties, remains responsible for sound corporate governance and promoting and safeguarding effective management toward the long-term success of the PIC. Good governance, appropriate transparency, accountability, and integrity should be principles embedded in every decision the PIC makes. This is more important in the light of the findings of the Mpati Commission chaired by former President of the Supreme Court of Appeal,” said Dr. David Masondo, the PIC Chairperson, following the Board meeting.

Issued by PIC Corporate Affairs, 21 April 2023