The Public Investment Corporation (PIC) will begin an investigation into the Ayo Technology Solution transaction and has resolved to suspend the executive head of Listed Investments Fidelis Madavo and the assistant portfolio manager Victor Seanie with immediate effect.

A preliminary investigation report was submitted to the board on Monday implicating PIC employees.

The PIC has been mired in allegations of poor governance and impropriety in recent years, with questionable investments and allegations of bribery against some senior officials.

The funding criteria of the PIC came under scrutiny in 2018, with questions asked over its purchase of R4.3-billion in shares in the initial public offering of Ayo Technology Solutions. The PIC bought shares at R43 a share, which have since fallen to R23 a share.

The Government Employees Pension Fund, the PIC's biggest client, last month said it had written off over R5-billion in its investments in Steinhoff’s empowerment partner Lancaster 101 and Independent News and Media SA.

The PIC has also been linked to VBS Mutual Bank with one official said to have received a R5-million bribe to facilitate payment of R350-million to the collapsed mutual bank. The PIC was a shareholder in VBS, holding approximately 25% of the company’s equity.

 “The PIC continues to uphold good corporate governance and will do everything in its power to restore the integrity of the institution,” the board said in a statement.