Former PIC man claims R2.3m

Public Investment Corporation (PIC) chief executive Brian Molefe took to the Pretoria High Court's witness stand this week to respond to charges brought by Kagiso Bodigelo, the PIC's former senior manager for private equity and corporate finance.

Bodigelo resigned from the PIC - the country's biggest investment manager with assets of just under R740-billion under management - in 2007, claiming he had been denied board payments, including a bonus amounting to R2.3-million.

Bodigelo had been a nonexecutive director at four companies - DCD-Dorbyl, Blue Label Investments, Kulungile Metals Group and Global Roofing Solutions - through an arrangement organised by the PIC in 2004.

According to court documents, Bodigelo was paid R2-million by DCD-Dorbyl, a mechanical engineering company linked to the PIC.

Other moneys in dispute include R55000 paid by Blue Label Investments, R117000 from Kulungile Metals Group and R35000 paid by Global Roofing Solutions.

According to a letter written to the PIC by James Ndebele of Fluxmans Attorneys in December 2007, Bodigelo had been requested by the chairman of Dorbyl to inquire from the PIC which account should be used for the R2-million transfer. He was told that the money belonged to the PIC's coffers.

"Our client was instructed by the executive committee of the PIC to inform Dorbyl to use the PIC bank account number and our client was told by the executive committee that it would revert to him on a proposed sharing of the sum of R2-million," the letter reads.

In a court document, Molefe said Bodigelo's concerns and payment demands were discussed at the PIC's executive committee meeting in June 2006. It was agreed there that "all board fees will be paid directly to the PIC and the nominee directors should keep record of the board fees for consideration during his/her performance assessment".

Molefe said Bodigelo "never received any written permission" from the PIC for other remunerative work outside the scope of his employment.

Representing Bodigelo, senior counsel advocate Ishmael Semenya said Molefe's credibility as a witness was "questionable" as his responses "weren't satisfactory".

Semenya argued that at the time the money was transferred into the PIC's bank account, the resolution by the PIC executive on board fees being paid directly to the PIC had not been taken yet.

He further submitted that his client be paid the money "owed" to him and that the PIC's defence application be dismissed with costs.

Judge Winston Msimeki, who acknowledged the "interesting nature of the case", deferred judgment.

Molefe would not comment on the matter, noting that it was sub judice.