It seems we have a new Gupta in our midst and his name is Iqbal Surve.

This man seems to be owning the PIC (Public Investment Corporation) and its CEO Dan Matjila.

PIC made Iqbal Surve a billionair over and over.

The PIC iniatially gave Surve around a billion rand loan to aquire the Independent Media group a couple of years ago.

Surve made a complete mess at the Independent Media group and the group is unprofittable, so Surve cant repay the loan.

The money he borrowed is due by August.

Surve then went about to set up a complete ponzi like fraudulent scheme that he called Sagarmatha Technologies , based on existing assets, so that the PIC would invest more billions in a private placement.

The amaBhungane investigative team of journalists exposed it and the private placement from the PIC never happened.

But a copy and paste of the Sagarmatha fraudulent attempt did happen in December where the PIC invested R4.3 billion in another of Surve's ventures called Ayo Technologies.

Now this is skulduggery on steroids and amounts to complete state capture.

The highlights :

  • The PIC invested R4.3 billion for 99,8 million shares valued at R43 per share - which amounts to 29.9% of Ayo Technologies .
  • Before the private placement , the Surve family held an effective 48.8% interest in Ayo.
  • According to the pre-listing statement for Ayo, the net asset value prior to the restructuring was 15 cents per share, as of August 2017.
  • Ayo also issued 31.96 million shares to a black economic empowerment (BEE) consortium for R1.50 per share, raising another R48m.
  • The injection of all that cash raised the net asset value from 15 cents per share to R12.47 - an increase of more than 8,000%.
  • Given the issue of new shares to the GEPF and to the BEE consortium, the effective interest of the Surve family in Ayo dropped from 48.8% to 29.9%, however, the net asset value of their interest in Ayo rose from about R16m to R1.3bn.
  • The main rationalisation for the private placement was for Ayo to acquire the 30% stake in the South African arm of British Telecommunications for approximately R1bn.
  • But as we have seen, that was already owned by another Surve family-controlled company, AEEI.
  • In effect R1bn in GEPF cash was used to transfer an asset from one company controlled by the Surve family, AEEI, to another, Ayo.
  • amaBhungane put it to Surve: "We are given to understand that much or all of this R1bn windfall for AEEI shareholders is likely to be distributed in the form of dividends to AEEI shareholders, of which the Survé family trust, via Sekunjalo Investment Holdings, holds a 61% majority. Please comment."
  • He did not respond.
  • The rest of the GEPF cash - a war-chest of some R3bn - is to be used to build the relationship with the British multinational, to buy up other companies and to leverage Ayo's BEE credentials to gain a bigger slice of the South African technology market.

Sources :

Also read : ABRA KADABRA SAGARMATHA - Cooking the books the Surve way