Trade unionist testifies about ill-fated Steinhoff investment

The Inquiry into allegations of impropriety at the Public Investment Corporation continues today. The commission will hear from businessman, Jayendra Naidoo.

PRETORIA - Former trade unionist Jayendra Naidoo has testified at the PIC inquiry about the ill-fated investment into Steinhoff Africa.

Naidoo said there was nothing to indicate there was anything wrong with the deal.

His company, Lancaster, received over R9-billion from the PIC to buy shares in Steinhoff International.

WATCH: PIC inquiry hears from Lancaster boss

Once that deal was signed, the company used protection money on the agreement to buy even more shares in Steinhoff Africa, known as STAR.

The investment had serious implications for the PIC.

It had to write off over R11-billion after Steinhoff's share price tanked when accounting irregularities came to light.

READ: Steinhoff to cut Conforama jobs

"In hindsight, with the effect of the -- what is widely understood to be the biggest corporate fraud in South African history -- PIC sacrificed something," said Naidoo.

"If we had an ability to see into the fraud, then we would have valued the protection more highly and the PIC would have valued the protection more highly."

Source
eNCA