Fresh conflict of interest allegations implicating Nene’s son raised at PIC inquiry

Fresh allegations have emerged about a business deal involving former finance minister Nhlanhla Nene’s son, Siyabonga Nene, at the Public Investment Corporation (PIC) inquiry.

The allegations highlight a conflict of interest deal where Siyabonga and business partner Amir Mirza approached the PIC for funding intended for a Mozambican oil refinery. This was during Nene’s tenure as deputy finance minister and while he was the chairperson of the PIC board.

The inquiry heard the allegations from the PIC’s executive head of impact investing, Royith Rajdhar, who gave his testimony at the commission on Monday.

Things apparently went south after the young Nene opted out of the over R600 million S&S deal in 2015 due to reported BEE issues. The commission heard how Siyabonga’s involvement in the deal would have been to open up the deal for Mirza, as they appeared to be more like friends than business partners, Rajdhar informed the inquiry.

The deal battled without Siyabonga and led to the asset manager struggling to get financial reports.

The commission resumes on Tuesday.

The Citizen reported earlier that Amabhungane and the Mail & Guardian probed into the former finance minister’s alleged involvement in the deal.

According to the reports, Mirza earned millions from the deal when Nene was the PIC’s chairperson.

Nene’s role in the deal was linked to businessman Momande Rassul Rahim, who was arrested for alleged money laundering, tax evasion, and smuggling.

This is due to PIC records stating that the state-owned investment corporation was “approached by a South African company” “to establish and fund the consortium to facilitate a 50% acquisition” of the S&S Refinery in Mozambique built by Rassul.

The company mentioned is Indiafrec Trade and Invest, owned by the younger Nene and Mirza.

(Compiled by Gopolang Chawane)

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