The Sunday Times has reported that a letter written by Ayo Technology Solutions’ executive team to their board reveals “a host of concerns regarding corporate governance issues”.
Ayo is controlled by AEEI, while AEEI is 61%-owned by Iqbal Surve’s Sekunjalo Investment Holdings, added the report.
The letter reportedly refers to interference in the company by board members and other executives from Surve-controlled companies.
This includes the “continued interference” of AEEI executives in Ayo, which could violate JSE rules.
Another aspect of concern was a transaction that involves BT Communications Services SA.
The report stated that AEEI owns 29.9% of BTSA and “wanted to sell its stake to Ayo for almost R1 billion”.
The letter said the high valuation of the stake was a concern.
The report further highlighted that Ayo was involved in a “controversial private placement” last year when the PIC subscribed to Ayo shares at R43 each to acquire 29% in the company. At the time, Ayo was trading at 15c per share.
Today, the shares are worth under R24.
This is not the first time Ayo has made headlines for negative reasons.
In August, CEO Kevin Hardy and CIO Siphiwe Nodwele resigned with immediate effect. Hardy was appointed in January 2018, and no specific reason was given for the resignation.
In May 2018, the PIC stated it was conducting an investigation into its investment in the company to ensure all the proper processes were adhered to.
Surve and his companies also made news in April 2018 when Sagarmatha Technologies announced that plans to list on the JSE would not take place.
The reason cited by the JSE was non-compliance with Section 33 of the Company’s Act, which requires the submission of financial statements to the CIPC.