A company borrowed R333 million from the PIC, did not pay it back, and then received R432 million

The Public Investment Corporation (PIC) is under scrutiny for its R432 million payment to Acapulco, which failed to repay a R333 million loan.

Member of the National Assembly, Andrew Bateman, made a request to Parliament’s Standing Committee on Finance about the matter.

He asked the committee to reinstate its postponed hearing into the PIC, with the Acapulco debacle among the matters requiring scrutiny.

The Acapulco issue dates back to 2013, when the PIC, acting on behalf of the Government Employees Pension Fund (GEPF), granted it a loan of R333 million.

The GEPF loaned Acapulco R333 million to acquire a 25% stake in Lanseria Holdings. As surety for this loan, Acapulco pledged its shares in Lanseria.

The loan agreement stated that Acapulco was to service the debt and make the final payment on the tenth anniversary of the first advance date.

On 11 November 2023, Acapulco defaulted on paying the final amount. It wanted to restructure the debt, but the PIC rejected this request.

On 16 May 2024, the PIC actioned taking the Lanseria shares which Acapulco pledged for the loan. The equity transfer to the GEPF took place on 24 June 2024.

However, there was a dispute over the valuation. An arbitration panel ruled on 17 September 2025 that the PIC had to pay Acapulco R411 million.

The PIC paid the money, adding that independent legal advice found no bias, gross irregularity, jurisdictional error, or material misdirection in this issue.

Despite accepting the ruling and making the payment, Finance Minister Enoch Godongwana admitted it was in the best interests of the GEPF.

The matter has subsequently been referred to the Special Investigating Unit for investigation.

Andrew Bateman calls for scrutiny

Bateman said that the situation where the PIC paid a company which defaulted on its R333 million required scrutiny.

“Acapulco borrowed R333 million from the PIC, defaulted on the loan, yet ended up paying the PIC more than R432 million,” he said.

Bateman asked Parliament’s Standing Committee on Finance to reinstate a postponed hearing into the PIC to address the issue.

His colleague, Kingsley Wakelin, has asked that Godongwana, former PIC Board Chairperson David Masondo, and PIC CEO Patrick Dlamini attend the hearing.

This was to ensure that these three leaders could provide a full account of what happened with the Acapulco.

Bateman added that the R411 million, which the PIC paid Acapulco after arbitration, was not the only money it gave the company.

“Six days after Acapulco had certified that the arbitration award had been settled in full, the PIC reportedly paid Acapulco a further R21 million,” he said.

“A PwC investigation identified failures, including apparent double-counting in the valuation and weaknesses in the PIC’s arbitration case.”

He added that the fact that the matter has been referred to the SIU cannot substitute for accountability to Parliament.

“We want answers on what happened, who will be held accountable, and how lost funds will be recovered. We are also demanding the release of the PwC report,” he said.

“Government employees and pensioners deserve to know how a defaulting borrower ended up receiving more than R432 million from their asset manager.”