PIC challenges R411 million award to Acapulco, demands halt to payout pending review

THE Public Investment Corporation (PIC) has formally launched court proceedings to review and challenge an arbitration award granted in favour of Acapulco Trade and Investment.

- BANELE GININDZA

The award ordered the State asset manager to pay more than R411 million in compensation following the collapse of a financing arrangement linked to Lanseria Holdings, the operator of Lanseria International Airport.

In legal correspondence between Werksmans Attorneys, representing the PIC, and Mabotja Attorneys, acting for Acapulco, the PIC has demanded that the disbursement of the arbitration award handed down by a panel in arbitration proceedings in September be halted pending the outcome of the review proceedings.

"We note that pursuant to the arbitration award, our client deposited to your firm's Trust Account, an amount of R411 282 264.44, plus interest," stated Werksman Attorneys. "In anticipation of the impending review proceedings, we have been instructed to demand, as we hereby do, that the disbursement of the amount of R411 282 264.44, plus interest, held by yourselves in trust on behalf of Acapulco Trade and Invest 164(RF) (Pty) Ltd be halted pending the outcome of the review proceedings."

The dispute stems from a 2017 funding arrangement, in which the PIC advanced R333m to Acapulco to acquire a 25% stake in Lanseria Airport.