The Public Investment Corporation (PIC) announced late on Friday that its board had placed chief investment officer Kabelo Rikhotso on precautionary suspension after a whistleblower report.
The Sunday Times has learnt the board took the decision after at least two meetings this week in which the whistleblower’s report emerged.
Though the PIC did not go into detail about the suspension, two people with insight into the upper echelons of the fund manager confirmed the report covered two controversial settlement agreements — handled by Rikhotso — in which the PIC allegedly lost billions.
One was a R600m repayment agreement the PIC entered into with Ayo Technologies in 2023, when the PIC approached the courts to nullify an earlier irregular R4bn funding transaction.
Ayo Technology is part owned by Sekunjalo, which is founded and co-chaired by Iqbal Surve.
“Mr Rikhotso’s suspension follows allegations of misconduct that were levelled against him through a whistleblower report ... The suspension does not in any way constitute a finding, nor is it a pronouncement of any wrongdoing on the part of the CIO
— PIC
The PIC’s then board criticised this settlement — in which Ayo agreed to purchase 17-million of the PIC’s shares in Ayo at a reduced price of R619m, a loss of billions for the PIC’s funders — saying it was not informed before the out-of-court settlement was reached.
A government official with direct knowledge of the situation said the previous PIC board had attempted to charge Rikhotso over conduct related to the settlement agreement, but got nowhere.
The PIC said: “Mr Rikhotso’s suspension follows allegations of misconduct that were levelled against him through a whistleblower report.
“Effected in line with applicable labour legislation and internal PIC policies and procedures, the suspension is intended to ensure a fair, objective and independent investigation into these allegations. The suspension does not in any way constitute a finding, nor is it a pronouncement of any wrongdoing on the part of the CIO,” it added.
The PIC said chief risk officer August van Heerden would act in Rikhotso’s position in the interim.
Rikhotso is the second senior official at the PIC to be suspended this year. The PIC’s head of unlisted investments Thabiso Moshikara was suspended over allegations that he solicited a R3m bribe.
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