Madavo was suspended on 22 January based on a preliminary report into the PIC’s investment in Ayo Technology Solutions.
The PIC controversially decided to underwrite AYO’s entire private share placement before its listing in late 2017 with a R4.3bn injection, despite internal concerns that it was overvalued.
“The preliminary report had indicated that governance and PIC approval processes had been disregarded when the transaction was concluded.Upon receipt of the preliminary report, the PIC instituted a disciplinary process against Mr. Madavo, which was chaired by an independent Chairman, who is also a Senior Counsel.
“After representations from both the PIC and Mr. Madavo, the Chairman recommended that Mr. Madavo be relieved of his duties on the basis of gross misconduct,” the PIC said on Monday.
The board welcomed the decision and viewed it as “an important step towards efforts to restore ethical behaviour and good corporate governance”, the statement added.
Madavo previously told the commission of inquiry probing governance and investment at the PIC that the AYO transaction took place when he was out of the country, Fin24 reported.
“I was not around, but as the head of the division I was suspended,” he said.