Written by Luís Nhachote
Translated by Francisco Chuquela
The Public Investment Corporation of the neighboring country South Africa is in the court of justice system of that country because of a multimillion-dollar investment of one billion of rands, which the executive chief of that company, Dan Matjila made with the ‘businessman’ of Nacala Momade Rassul, the Primeira Mão noticed from sources in that country. Momade Rassul will have to be heard by the same authorities to explain this financing, to a factory that isn’t operational, which is making choleric the nerve-wracking sectors of the South African economy.
The investment authorized by Matjila is considered fraudulent and bleak, was for the injection of the S&S oil refinery factory owned by Momade Rassul.
Who is the PIC?
The Public Investment Corporation (PIC) is a South African almost-public investment entity with more than R1,857 trillion ($ 137 billion) in assets under management. This corporation holds large holdings in several South African companies and is one of the entities through which the government implements its policy of Black Economic Empowerment (BEE). The PIC is also responsible for investing the Government Pension Fund of South Africa (GEPF). In this regard, the esteemed reader can read the response of this corporation to the issues of this portal.
Momade Rassul was detained on preventive orders by the General Attorney Office (PGR) and was released on July 7 after payment of a security of 8 million Meticais. The General Attorney Office accuses Rahim of several crimes and the motto of his detention followed by steps taken by the Bank of Mozambique (BM), after the governor Rogério Zandamela, have stated that some potential Moza buyers who allegedly wanted to acquire it to do money laundering. Among others, the General Attorney Office has deduced several serious accusations that include money laundering, illicit enrichment, tax fraud, foreign currency manipulation, smuggling and misappropriation
The “trouble” in South Africa…
The Public Investment Corporation has made several payments to Momade Rassul, through Dan Matjila, who is believed to have close ties with Rassul. Matjila, has admitted that the Public Investment Corporation has invested about 63 million dollars (about R825m) in the Rassul’s company.
The Public Investment Corporation wanted to enter into corporate structure of S&S as the majority shareholder of a plant that isn’t in operation…
However, new details began to emerge as to how this corporation invested more than one billion of rands in the Rassul’s non-operational oil refinery.
Several cross sources revealed that the corporation would have paid, first 35 million dollars, followed by another payment of 28 million. It’s believed that the Public Investment Corporation has advanced 10 million to increase its stake in the S&S Oil Refinery to 70%. Another 10 million have been advanced to S&S, apparently to obtain raw materials from Indonesia, thus making $83 million worth of the equivalent of 1 billion Rands.
About S&S oil refineries, limited
According to the Bulletin of the Republic (BR) number 40, Series III, in the 3rd Supplement of October 12, 2009, this company was formed by Momade Rassul Abdul Rahim, Saidata Muahija Ibraimo Saide Nuro and Hamida Bay Issa. One million meticais was the initial value of the same whic proposed in its corporate object to dedicate to “a) Industry, namely the refining of crude oils, as well as the commercialization of the respective finished products, namely, oils and soaps; b) Trade, namely, the import and export of goods and services;
c) Purchase and sale of financial holdings and portfolio management of third-party securities.”
The headquarters place declared at the opening of the society was Nacala, where Momade Rassul has a vast entrepreneurial empire, as we gave account in the previous article of this series with Bollywodesc contours.
The Mirza’s complaint…
Dan Matjila will have revealed that the Public Investment Corporation has applied a facilitation fee to a company called Indiafrec Trade & Investment (Pty) Ltd, whose directors are listed as being born in India, Ameer Mirza and Siyabonga Nene.
Mirza’s lawyers, Barry Aaron and Associates, sent to Dan Matjila a letter of complaint dated from July 12, 2017.
The letter contains explosive details of how Matjila manipulated the agreement in favor of Rassul and to disadvantage of Mirza, who presented Matjila to Rassul.
Some days ago Mirza’s lawyer told the Weekly Exposé, a South African publication that “this conduct as well as the entire project, including the calculation of the value $ 48 million that the Public Investment Corporation agreed to pay Rassul and the modification of the original transaction structure, the distribution of the products in terms and the entire circumstances in the terms for which all of this occurred should also be subject to forensic investigation and our client intends to take steps to facilitate this and provide the forensic investigators with the required background, documentation and information.”
Mirza’s lawyers have referred to the denunciation of this captive of the High Court of Johannesburg to force the Public Investment Corporation to pay what they insist is due to their client.
The response of PIC to Primeira mão
This portal contacted the PIC by e-mail. Deon Botha, the chief of corporate affairs at PIC who confirmed the investment of 63 million dollars injected at the S&S refinery.
According to Botha the investment is part of the mandate of PIC with the rest of the continent. “Like all other investments, the investment in S&S has gone through the necessary investment process, which includes due diligence. Investment decisions are made by the relevant committees formed by the PIC Board, “Botha said, adding that the transaction with the S&S refinery was subject to this investment approval process.
Deon Botha also said that the money invested by PIC “and local Mozambican banks was used to complete the construction of a new edible oil refinery. It continues to produce and sell refined edible oil. However, like any boot project, it will take some time to achieve full production capacity. Plans are required to bring the project to full production capacity. “The source added that “Dr. Matjila is the representative shareholder of the PIC in the S&S Refinery and he has no personal relationship with Mr. Rassul.”
The Primeira Mão asked Botha if the PIC was aware that the factory wasn’t operational, he simply didn’t answer.