How deal pitched by Nene’s son to the PIC went wrong
Even after the PIC took control accounting system was neglected
After investing millions of rands into a business pitched by former finance minister Nhlanhla Nene’s son, the PIC failed to implement a proper accounting system over eighteen months after becoming a shareholder. The lack of a proper electronic-based accounting system increases the risk of losing and destroying documents like invoices and delivery notes. This would make ascertaining the financial state of the enterprise a time consuming process and introduces even more uncertainty and risk to the state-owned asset manager. The PIC ’s executive responsible for monitoring unlisted investments in the Portfolio Management and Valuations department, Constance Madzikanda told the Mpati commission of inquiry on Wednesday that the S&S Refinery in Mozambique still did not have this accounting system even after the PIC had become the majority shareholder. “As such all record keeping for production, sales, billing and collections was done manually,” Madzikanda said. The commission was establish...
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