The union has called on the PIC to provide details of the settlement with Ayo, failing which it will consider litigation
27 March 2023 - 13:33
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The Public Servants Association (PSA) has said it rejects the secretive deal between the Public Investment Corporation (PIC) and Ayo Technology Solutions, and has demanded transparency about the settlement.
On Friday, the PIC announced it had reached a settlement regarding the proceedings it had instituted in the Western Cape High Court, where it was seeking to recover a R4.3bn investment in Ayo.
The details of the settlement, which were made an order of the court, were not disclosed by the PIC.
The union called on the PIC to provide the details of the settlement with Ayo, failing which it would have no other option than to consider litigation.
“The PSA represents more than 237,000 public-sector employees and raised serious concerns with investment as far back as 2020,” it said.
The union said it represented a significant number of employees belonging to the Government Employees Pension Fund (GEPF) and had a significant and direct interest in how GEPF assets were invested.
“The question that remains is whether Ayo misrepresented itself when it secured R4.3bn in funding from the PIC.
“The stock value of Ayo has fallen from R43 to R4.70 per share, which has major financial implications for the GEPF and its members.”
The PSA said the investment was another indication that the PIC’s strategy was not in line with its own mandate. It said reckless investments were compromising the GEPF and its members.
“On this basis, the PSA calls for transparency and rejects this secretive deal between the PIC and Ayo. The current state of affairs and the manner in which the PIC, as a plaintiff, settled this matter in secrecy leaves much to be desired.”
The PSA said it would leave no stone unturned to obtain the facts in the matter.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
PSA wants details of deal between PIC and Ayo
The union has called on the PIC to provide details of the settlement with Ayo, failing which it will consider litigation
The Public Servants Association (PSA) has said it rejects the secretive deal between the Public Investment Corporation (PIC) and Ayo Technology Solutions, and has demanded transparency about the settlement.
On Friday, the PIC announced it had reached a settlement regarding the proceedings it had instituted in the Western Cape High Court, where it was seeking to recover a R4.3bn investment in Ayo.
The details of the settlement, which were made an order of the court, were not disclosed by the PIC.
The union called on the PIC to provide the details of the settlement with Ayo, failing which it would have no other option than to consider litigation.
“The PSA represents more than 237,000 public-sector employees and raised serious concerns with investment as far back as 2020,” it said.
The union said it represented a significant number of employees belonging to the Government Employees Pension Fund (GEPF) and had a significant and direct interest in how GEPF assets were invested.
“The question that remains is whether Ayo misrepresented itself when it secured R4.3bn in funding from the PIC.
“The stock value of Ayo has fallen from R43 to R4.70 per share, which has major financial implications for the GEPF and its members.”
The PSA said the investment was another indication that the PIC’s strategy was not in line with its own mandate. It said reckless investments were compromising the GEPF and its members.
“On this basis, the PSA calls for transparency and rejects this secretive deal between the PIC and Ayo. The current state of affairs and the manner in which the PIC, as a plaintiff, settled this matter in secrecy leaves much to be desired.”
The PSA said it would leave no stone unturned to obtain the facts in the matter.
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