Steinhoff deal questioned

The PIC inquiry continues to hear how a number of companies benefited unduly from the state-owned asset manager's investments. On the stand, today is Botsang Morobe, an associate principal at the PIC.

JOHANNESBURG - The exorbitant transaction fees paid during the PIC's investment into disgraced retailer Steinhoff have raised eyebrows.

The PIC inquiry has heard from two officials who explained the origin of the deal.

WATCH: PIC Inquiry continues with JSE testimony

They testified that when the asset manager pumped over R9-billion into Steinhoff, it believed the investment would grow.  

But that stake is now worth only R200-million.

Evidence has been presented about how Lancaster Group, owned by ex-unionist Jayendra Naidoo, approached the asset fund manager for money to buy BEE shares in Steinhoff.

Steinhoff's share price dropped in December 2017 when its CEO Markus Jooste stepped down amid allegations of accounting irregularities.

READ: Steinhoff ordered to name executives accused of 'inflating profits'

Botsang Morobe an investment associate from PIC said, "Steinhoff at the time had been reporting to positive earnings.

"It was in our view we would get a return that was in line with our mandate."

On Wednesday explosive cross-examination of a high-profile witness, who can't be named, is expected to happen.

Source
eNCA