Ayo Technologies to sue PIC for ‘billions’
The Public Investment Corporation invested R4.3bn in Ayo in December 2017, but the deal has garnered controversy and is the subject of a commission of inquiry
Ayo Technology Solutions intends to sue one of its largest shareholders, the Public Investment Corporation (PIC), for billions of rand, according to an article published on Independent Media's Business Report website on Wednesday.
The PIC invested R4.3bn in Ayo in December 2017, a deal that subsequently garnered controversy as details of the irregular process the asset manager followed came to light in media reports and at the commission of inquiry being chaired by retired judge Lex Mpati.
“The conduct of the PIC and former executives of Ayo who testified at the PIC commission of inquiry, has resulted in Ayo struggling to conclude transactions and do its business in an unhindered manner. This, in turn, has significantly prejudiced Ayo, its employees, customers, shareholders, advisers and business relationships," Ayo chair Wallace Mgoqi is quoted by Business Report as saying.
Meanwhile, documents seen by Business Day show that the PIC has lodged court papers against Ayo. The state asset manager previously vowed to recover its investment in Ayo.
I have been reliably told that the PIC is suing Ayo Technology Solutions! Papers lodged and served. Finally a step in the right direction 😀— Magda Wierzycka (@Magda_Wierzycka) May 29, 2019
Correction: May 30 2019
An earlier version of this article incorrectly stated that Business Day had independently verified that Ayo had served summons on the PIC in the Western Cape High Court. Business Day has documents showing that the PIC has lodged papers against Ayo.