PIC given 15 business days to recoup AYO billions
The PIC says it has appointed Gwina Attorneys to assist it in recovering the R4.3bn capital it invested in AYO Technology Solutions.
The state asset manager confirmed on Tuesday that it was issued a compliance notice on February 21 which requires it to recover the capital investment made to AYO within 15 business days of the date of the notice, and provide the commissioner of the Companies and Intellectual Property Commission (CIPC) with confirmation.
According to the notice, it must also recover any interest that may have accrued on the investment within six months.
The CIPC stated that based on the available turnover figures, the PIC did not act in good faith and in the best of interest of the company when "it decided to invest the disproportionate amount of R4.3bn in AYO".
The watchdog added that the PIC failed its fiduciary responsibility and put the PIC in jeopardy. According to the CIPC, failure to comply with the notice may result in prosecution, with a maximum fine or 12 months imprisonment.