The PIC’s investment into AYO is sound, the R4.3 billion investment is still intact – Wallace Mgoqi

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CAPE TOWN – The chairperson of the board of AYO Technology Solutions, Advocate Wallace Mgoqi, said on Tuesday that he was delighted that the Commission of Inquiry into alleged impropriety at the Public Investment Corporation (PIC), for the first time, was able to hear directly from the former chief executive of the PIC, Dr Dan Matjila, about the investment into AYO.

In an exclusive interview with Business Report, Mgoqi reiterated the following points that were made by Matjila after his mammoth 12-day testimony: “The PIC’s investment into AYO is sound, the R4.3 billion investment is still intact and the PIC’s move to recoup its investment is a suboptimal approach.”

Matjila said: “I think it is a suboptimal approach. I mean unless the law has been broken somewhere and the JSE has not done its work in approving the PLS (pre-listing statement), the basis of which, an investment was made,” Matjila said.

Mgoqi applauded Matjila on his clear, concise and unbending testimony which reflected a well-rounded view of the AYO transaction in as much as, AYO is in fact a viable and long-term investment.

“AYO is still focused on delivery value – to all shareholders and stakeholders – despite the vitriol that it has been subjected to in recent months,” he said.

AYO’s share price had come under threat Mgoqi said, as a result of negatively slanted, false and misinformed reporting. This was corroborated by Matjila in his statement on Monday August 11, and throughout his testimony.

“The market is reminded that the underlying value of the company continues to be vested in the transformation and growth of the ICT sector in South Africa, and beyond.  This has not changed since the initial valuation of the company and pre-listing statement (PLS), prior to listing on the Johannesburg Stock Exchange in December 2017,” he said.

Mgoqi called on the market and the media to refrain from engaging in biased and factually incorrect reporting, and to allow the company to focus on its day-to-day business, unlocking its investment pipeline and growth, and in realising the transformation of the ICT sector.

This story first appeared in the Business Report Online