Monday , November 18 2019
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Is the Iqbal Survé ship sinking?

His main financier sued him; he was invaded; and now your auditors are jumping ship.

Iqbal Survé's problems are increasing. BDO, auditors not only of Ayo Technology Solutions, but of all the other major Survé companies, have given up.

In a letter to all partners of the company, BDO CEO Mark Stewart announced today that "upon careful consideration by our executive committee, BDO South Africa will not be seeking a renewal of its mandate with the following clients."

It then lists the main JSE-listed vehicle in Survé, African Equity Empowerment Investments (AEEI), as well as Ayo Technology Solutions, Premier Fishing and Independent Media, Survé's struggling media empire that owes the PIC approximately $ 1 billion. can not afford.

The first three are listed on the JSE, while Independent is a privately held company controlled by Surve's Sekunjalo Investment Holdings.

All three listed companies with which BDO is severing ties were also recently overrun by the Financial Services Conduct Authority regarding the market manipulation investigations that amaBhungane had previously reported on. on here.

Ayo also had an incestuous relationship with the rest of the group, which is controlled by Survé through Sekunjalo. Most of Ayo's investments benefited related parties.

There were accusations, vehemently denied, that the company is hiding what remains of the $ 3.3 billion that the Public Investment Corporation (PIC) has recklessly invested in Ayo.

At Ayo, BDO's departure is doubly significant because BDO was ordered by JSE to have its financial statements for the six months ended February 28, 2018, essentially re-audited – by BDO.

This process has been going on for several months since JSE first placed the order in April 2019.

Phone calls and messages to Survé and AEEI CEO Khalid Abdulla were not answered this afternoon.

Currently, the PIC is trying to recover its $ 4.3 billion from Ayo, arguing in court that the investment was based on false statements. Ayo is defending the lawsuit, arguing that the PIC has made a valid investment with his eyes. eyes open.

This week, the state asset manager even suggested that he wants to prevent Ayo from dissipating the money.

In an appearance in parliament this week, PIC's chief legal, governance and compliance officer Lindiwe Dlamini said the PIC was considering obtaining an anti-dissipation order to prevent money from flowing out while the recovery process is underway. follows its course.

Ayo has strongly denied any plan to disperse assets, but retains the right to proceed with an investment and acquisition program using PIC's cash injection. DM

The amaBhungane Investigative Journalism Center, an independent nonprofit, produced this story. I like that? Bean AmaB Support to help us do more. Subscribe to our Newsletter andWhatsApp Alerts to get More.


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