In 2013, Sekunjalo Independent Media (SIM), controlled by Iqbal Survé, acquired Independent News & Media SA with R2 billion in PIC (Public Investment Corporation) funding. In December 2017, the PIC invested R4.3 billion in Ayo Technology Solutions (a Sekunjalo subsidiary) at R43 per share for a 29.9% stake.
Survé also attempted to raise R7.5 billion for Sagarmatha Technologies, a digital media listing — the JSE withdrew approval due to technical shortcomings. Total PIC exposure to Survé-linked entities: approximately R6-7 billion of state pension fund money (GEPF).
The Commission of Inquiry into the PIC (Mpati Commission, 2020) found: - PIC funding to Survé entities was done "irregularly", based on Survé's "friendship with then-PIC CEO Dan Matjila", not on sound investment merits. - There was a "marked disregard for PIC policy and standard operating procedures." - The Ayo investment was rushed through without proper due diligence.
The consequences were devastating. Following the Mpati Commission report, Absa, Investec, FNB, and Nedbank all closed accounts with Sekunjalo subsidiaries, citing "malfeasance" and "reputational risk." Independent Media newspapers collapsed: The Star fell from 220,000 circulation to below 15,000; Cape Argus from 80,000 to under 8,000; Pretoria News from 30,000 to under 1,900.
In August 2024, the Press Council found Independent Media newspapers and IOL were being used to "advance Sekunjalo's corporate interests." The PIC applied to liquidate SIM to recover R1.5 billion. Settlement on Ayo left the PIC with approximately R600 million of its R4.3 billion — a loss of at least R2.5 billion of state pensioners' money.
AEEI (Survé's holding company) delisted from the JSE in April 2024.