Gopolang Moloko
2 minute read
23 Apr 2019
2:02 pm

Former PIC executive says he’s not part of a PIC BEE cartel

Gopolang Moloko

Jabu Moleketi dismissed allegations made against him by Bantu Holomisa of 'looting state coffers'.

Former Public Investment Corporation (PIC) head of corporate finance Jabu Moleketi continues his testimony against allegations made by United Democratic Movement (UDM) leader Bantu Holomisa of mismanagement at the PIC.

The PIC commission of inquiry continues on Tuesday where Moleketi is being cross-examined on allegations of a conflict of interest with relation to former directors and employees of the PIC. Moleketi has also been accused of being part of a BEE cartel which has access to PIC funds.

Holomisa, who has tasked the commission to investigate mismanagement at the PIC, alleged that there remained a cartel of BEE beneficiaries that appeared to have had easy access to the PIC’s resources.

In allegations against Harith General Partners (HGP), Harith Fund Managers (HFM), and the Lebashe Investment Group, he maintained the state coffers were looted, although he has not provided evidence to support his claims.

Moleketi refuted the allegations that the PIC had put peoples’ pensions at risk, as stated by Holomisa. While reading his testimony, he elaborated that he was a shareholder of Lebashe through his family trust. He is the chief executive of investment company Harith General Managers (HGP), and former PIC head of corporate finance and the Isibaya Fund. The commission heard how allegations of impropriety made against Moleketi by Holomisa were misinformed and untrue.

He states he received no board fees or options and was never a beneficiary of the PIC.

“PIC benefits from its shareholding of HFM,” Moleketi told the commission as he continued his testimony after the chairperson of Lebashe Investment Group and chief executive officer of Harith General Partners, Tshepo Mahloele, took the stand last week.

Mahloele, the former PIC executive, outlined how he went about leaving the PIC and how Harith funds were established, last week.

The inquiry heard how Harith Fund Managers (HFM) was set up in 2007 to manage investments of Pan African Infrastructure Development Fund. HGP was later set up to raise money.

Staff and assets were migrated from the first fund to the second. The two companies were initially registered with the intent for one fund to be the fund manager while the other meant to hold shares of staff in the fund. A trust was then established to hold employees shares, which was the reason HGP was dormant until 2012, Mahloele told the commission.

Lebashe declared that claims made against them were baseless and damaging to their reputation.

The inquiry continues as more representatives from the companies are expected to give testimony to the commission of inquiry.

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