The Public Investment Corporation (PIC) has lodged an application to liquidate Sekunjalo Independent Media (SIM), a special purpose vehicle set up in 2013 to buy out Independent Media SA from its Irish owners.

Independent Media is the publisher of several titles across SA, including The Star, the Cape Times, Cape Argus and The Mercury.

SIM spokesperson Takudzwa Hove described the application as part of a series of ‘co-ordinated attacks on Independent Media, and ultimately, an attack on media freedom’.

SIM is a separate entity from Sekunjalo Investment Holdings, the investment holding company of Cape Town businessman Iqbal Survé, notes Fin24.

SIM falls under Sekunjalo, and Survé is the chair of Independent Media.

‘SIM is of the firm belief this action is designed as a further attempt to embarrass and undermine the Sekunjalo Group and Dr Survé personally and is aimed at provoking a run on SIM’s major subsidiary, Independent Media, which is fully operational,’ SIM said.

‘SIM has instructed its attorneys to oppose this frivolous application and seek the appropriate relief against those involved, which will include seeking a special costs order against the PIC and holding those responsible personally liable,’ SIM said.

Full Fin24 report

Hove said the PIC’s application is filled with inaccuracies.

‘Among the many errors in the supporting affidavit, the PIC and its advisers cited the incorrect parties to the relevant legal agreements. This action is not only incompetent and mala fide but malicious on the part of the PIC and its advisers.’

A Mail & Guardian report notes the liquidation application follows the PIC’s head of legal services, Lindiwe Dlamini, telling the Finance Committee in Parliament that the state asset manager would be looking to recoup its funds from the Sekunjalo-led consortium.

This is after the company had failed to service a 2013 loan from the PIC to acquire Independent Media from its Irish owners.

In a previous statement, Survé disputed the suggestion that R1.5bn is owed to the PIC by SIM, saying that the company has never requested a loan from the state asset manager.

‘The PIC and its advisers have elected not to disclose in their court papers, SIM’s letter of 30 September 2019, addressed to its attorneys by SIM, wherein it is explained that SIM is not indebted to the PIC for any sum,’ Hove said.

‘This application is a waste of taxpayers’ money and constitutes irregular spending on the part of the PIC, which should be investigated by the appropriate authorities.’

Full Mail & Guardian report