Concerns raised over Standard Bank's involvement in PIC transactions

NEW equity partners in the deal included Zungu Investments and Mergence Investment Managers, joining the Development Bank of Southern Africa (DBSA) and the GEPF, who retained their existing exposure through the PIC.

- HENK KRUGER

The transaction marked a significant shift for Harith, from acting solely as a fund manager to becoming a direct equity stakeholder in its portfolio assets.

According to Dealmakers SA, while PSG Capital served as the main corporate advisor, Standard Bank also acted as an advisor on the debt funding aspects of the deal. Other advisory firms included White & Case (SA), KPMG, and Nolands Capital.

Harith's operations have previously been examined by regulatory and investigative bodies. The company was prominently featured in the 2019 Mpati Commission of Inquiry into governance at the PIC, which examined allegations around excessive management fees and potential conflicts of interest in investment structures.

The Commission ultimately found no evidence that Harith had engaged in conduct detrimental to the PIC.

STANDARD Bank's involvement in state-linked infrastructure investments has come under renewed scrutiny, particularly concerning its historical dealings with the Public Investment Corporation (PIC) and Harith General Partners. | HENK KRUGER Independent Newspapers