The Public Investment Corporation’s (PIC's) executive head of internal audit Lufuno Nemagovhani on Wednesday alleged at the commission of inquiry – led by former Supreme Court of Appeal Justice Lex Mpati – that the Ayo Technology transaction was blighted by a procedural irregularity.

Nemagovhani was led in his testimony by the inquiry’s evidence leader Advocate Jannie Lubbe SC at the public hearings in Pretoria. 

“I just want to have the timelines, very specific for the commission. You filed an audit query, where you raised specifically the Ayo investment matter,” Lubbe put it to Nemagovhani.

“Yes. I must clarify that this was an audit that was being performed on the listed equities process. It was not a specific audit on the Ayo matter. Ayo was one of the samples that were selected,” explained Nemagovhani.

“So the finding in this audit query was transaction not ratified. During the review of a sample of transactions, internal audit noted that the Ayo Technology transaction IPO share subscription form was signed off on 14 December 2017 and confirmed with the listing agent before approval of the transaction by PMC Listed on 20 December 2017."

Lubbe asked Nemogovhani to repeat his statement to further clarity the alleged breach in process.

"We deliberated on the matter in the meeting with relevant management. We deliberated on this matter and then at the end, we managed to prove that there was a process breach, or there was a problem with the process," said Nemagovhani. 

The inquiry adjourned and resumes on Monday.