PIC Commission heard of Home Loans deal to Bolatja Hlogo

SABC News Ian Sinton - PIC Commission heard of Home Loans deal to Bolatja Hlogo

The PIC Commission of Inquiry heard of condition to a loan that could be perceived as soliciting a bribe by PIC officials.

Special counsel at Standard bank, Ian Sinton, took the commission through the SA Home Loans transaction.

Standard Bank owns 50% of SA Home Loans. PIC owns 25%; and Bolatja Hlogo consortium, led by Kholofelo Maponya owns 25%, which was funded by PIC.

Sinton says around the 2008/2009 global financial crisis, its partner then JP Morgan sought to dispose of its 50% shareholding in SA Home loans.

GEPF, through the PIC, was approached to invest in SA Home loans. Sinton says as negotiations progressed, the PIC introduced Kholofelo Maponya as another party to acquire half the stake that was on offer.

The PIC funded Maponya’s 25% stake in SA Home Loans.

Sinton says Standard Bank was reluctant to sell the shares to the consortium as they required an institution with sufficient liquidity, but the PIC gave an undertaking to provide a guarantee for the consortium’s obligations when needed.

The PIC loaned SA Home Loans R9 billion, a transaction which is now a subject of litigation after Maponya demanded he be paid R45 million for facilitating it.

When the R9 billion was drawn down, SA Home loans applied for a R10 billion loan again from PIC.

Sinton says they were told of a condition to the loan that could be interpreted as a solicitation for a bribe.

Sinton says the R95 million request was not paid and to date. The R10 billion loan application has not been approved.

He says they never got to contact Matjila to authenticate if he indeed authorised this request, as Matjila resigned from the PIC shortly afterwards.


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