Imagine an African company of the likes of Uber, Airbnb, Amazon, Lyft or Alibaba. South Africa missed its chance when plans to publicly list Sagarmatha Technologies were scuppered by “negative propaganda”, Sekunjalo chairman Iqbal Survé told the PIC Inquiry on Tuesday.

The inquiry has focused heavily on controversial deals with three companies tied to Survé: Independent Media, Ayo Technology Solutions and Sagarmatha Technologies. He responded on Tuesday to claims that the transactions were overpriced and pushed through due to his ties to the asset manager’s executives.

Survé said Sagarmatha could have helped the continent resist a form of corporate colonialism, but the PIC did not invest R3-billion as planned.

Sagarmatha’s JSE listing was prevented by the Companies and Intellectual Property Commission (CIPC) in April 2018 when the company didn’t submit its financial statements in time. If it had listed in South Africa and in New York as planned it might currently be worth $10-billion, Survé claimed.

He spoke extensively on his commitment to supporting black-owned businesses in an environment dominated by white-owned companies and proudly told the inquiry, chaired by retired Justice Lex Mpati, that Sekunjalo had no debt.

“We are not enslaved to any white businesses or banks or institutions,” he claimed.

The following video was circulated on a WhatsApp group by Dr Survé himself:

Commissioner Gill Marcus told Survé the inquiry wasn’t a political platform:

“This isn’t about a platform for your personal views about white-black in South Africa. This is a non-racial country as far as I’m aware. Can you have some respect?”

The Sekunjalo chair suggested he was only speaking the truth on transformation, a topic he was more comfortable on than the details of the PIC transactions.

The inquiry has heard testimony on how PIC executives such as former CEO Dan Matjila were pushing to pay Sagarmatha’s asking price of R39.62 per share to raise R3-billion while the PIC’s investment team only valued its shares at R7.06 each.

The proposed deal raised multiple red flags as the PIC had just invested R4.3-billion in Ayo and had in the past lent Survé’s Sekunjalo R1-billion to purchase Independent Media.

Survé said on Tuesday that Independent had immediately paid back R150-million in the Independent deal and Sekunjalo in 2018 offered to take over the PIC’s exposure to the group. The asset manager said in 2018 that it had an impairment of R1.06-billion in Independent Media.

“It is respectfully submitted that in the circumstances there is nothing untoward about this transaction,” said Survé on the Independent Media deal.

Witnesses at the inquiry have alleged the R2-trillion asset manager’s decision to invest R4.3-billion in Ayo Technologies was taken against the advice of its own analysts and pushed through by Matjila and suspended acting CEO Matshepo More without following the due diligence process and at a grossly inflated R43 per share.

“Mr Commissioner, this is one of the few companies in this country that when it says it’s going to deliver, it delivers, because it takes pride in black excellence in particular,” said Survé, lauding Ayo’s 20-year history.

In a BEE pre-listing deal, Ayo sold a group of unions shares at R1.50 before the PIC invested its R4.3-billion. Survé said the share prices should not be compared and the company was trying to include those who have historically been denied access to financial markets.

He denied Ayo overcharged the PIC for its shares and that R43 was agreed as an accurate mid-range valuation by senior executives.

“This is a great company,” said Survé.

He said Ayo’s interim results, released on Monday, showed it had R5.2-billion in assets and Independent Media reported Ayo had increased its pre-tax profit to R267-million.

City Press reported in November 2018 that Ayo’s profit growth was largely due to the interest earned on the R4.3-billion from the PIC.

A court recently ruled that the CIPC’s instruction to the PIC to recover the R4.3-billion and any interest earned was unlawful, but the PIC has said it remains committed to getting its money back.

Survé said it was ironic that the PIC wants to recover its money from a profitable entity while other companies such as Steinhoff have squandered their PIC investments.

He described rival media companies, such as his arch-enemy Tiso Blackstar, as ruthlessly trying at every turn to scupper his efforts to transform South African society by spreading propaganda and causing panic on proposed deals like the Sagarmatha listing and the transfer of 30% of British Telecoms SA from African Equity Empowerment Investments (another Survé-linked company) to Ayo.

Rival media companies and journalists have repeatedly denied Survé’s claims and accused him of using Independent Media to mislead the public and investors while ignoring criticism surrounding his companies.

The inquiry has heard that Sekunjalo apparently benefited from sweetheart deals, which were criticised in the media and later resisted by PIC employees, some of whom were punished for their intransigence.

Evidence Leader Advocate Jannie Lubbe quizzed Survé on his relationship with Matjila and the PIC’s head of listed investments, Fidelis Madavo, who was suspended for his role in the Ayo deal. Survé said he did not recall calling Matjila a friend in a meeting, but said anyone who is black and excels is a friend.

He did not remember whether he sat at the same table as Madavo at an Independent Media awards ceremony in 2016 or whether Madavo gave a keynote speech. Lubbe said there was a photo of the pair at the event.

According to Lubbe, Sygnia Group CEO Magda Wierzycka is willing to testify that Survé had Madavo in his pocket.

“That’s an insult to me, someone that operates with integrity,” Survé shot back. “She needs to see a psychiatrist.”

Survé has laid extortion charges against Wierzycka, claiming she pressured him to sell her shares in Sygnia back at a discounted price. Wierzycka is pursuing a defamation case against the Sekunjalo boss.

Survé will continue to testify at the inquiry on Wednesday where he is likely to face tough questions under cross-examination. DM