Steinhoff: PIC got its seat on the board, but at terrible cost
Having a director on the board provides no guarantee of sound governance. Just ask Jayendra Naidoo
It did smack a little of ex-post rationalisation and it did seem like an enormous fee for access to the board. But former PIC CEO Dan Matjila was on the right track when he told the Mpati commission of inquiry about the importance of having director representation on a board.
This, Matjila told the commission, was the main motivation behind the decision to invest an additional eye-watering R9.35bn into Steinhoff via a loan to a vehicle set up by former trade unionist Jayendra Naidoo.
The additional investment, which was made through the PIC’s Isibaya Fund, would entitle the PIC to appoint a black representative to the Steinhoff board. That representative was Naidoo...