Despite the board of the Public Investment Corporation (PIC) blasting executives for the secrecy around the court-approved settlement with JSE-listed IT company AYO Technology Solutions, the board considers the settlement a good commercial move.

‘Whilst deeply concerned about management’s handling of the governance processes, the board believes the AYO settlement, which is an order of the court, is justified as a good commercial decision,' it said in a statement recorded on the Moneyweb site.

Last month, the PIC signed a settlement agreement with AYO, bringing to an end a court battle between the two in which the PIC moved to set aside its investment in AYO and recover R4.3bn. 

The PIC board said its executives did not timeously inform the board of their intention to settle with AYO.

However, it added: ‘This settlement seeks to recover money from a questionable investment, salvaging value for its client and its beneficiaries, whilst ensuring that AYO Technologies remains a going concern.’

Full Moneyweb report