The reports of forensic investigations into the transactions by the Public Investment Corporation (PIC) with the Sekunjalo Group and with Mozambique’s S&S Refinery have been submitted to the Hawks.
Both transactions came under the scrutiny of the Mpati commission of inquiry, which was set up in 2018 to investigate allegations of impropriety at the state-owned fund manager.
The referral to the Hawks was revealed by finance minister Enoch Godongwana in reply to questions in parliament by DA MPs.
The Mpati commission recommended the PIC board conduct a forensic review of all transactions with the Sekunjalo Group, including those with Independent News and Media SA, Ayo Technologies and Sagarmatha Technologies. The group has strongly denied any wrongdoing in those transactions.
While the commission made no finding of impropriety regarding the investment transaction with S&S Refinery, a palm oil refinery project, it said the investment decision did not take account of material factors affecting production in Mozambique.
It also noted that the conditions precedent which applied to the transaction were not implemented, which represented “a serious management oversight, and those responsible should be held to account”.
The PIC invested $63m in the project. The investment proposal was made by Indiafrec Trade and Investment, a company owned by Amir Mirza and Siyabonga Nene, the son of then-deputy finance minister and PIC chairperson Nhlanhla Nene.
Nene junior withdrew from Indiafrec during the negotiations, and Nene senior denied any impropriety or that he had knowingly promoted his son’s business. The PIC paid an R18.5m referral fee to Mirza’s company in the United Arab Emirates, Zaid International.
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