AYO Technology Solutions is taking legal action against News24 and journalist Carol Paton following the publication of a contentious article AYO claims is filled with malicious and defamatory statements.
The article “Revealed: Why the knives are out for PIC investment head”, published on October 9, 2023, has drawn sharp criticism from AYO, which regards it as a deliberate attempt to damage its reputation.
In a formal statement issued on Wednesday, AYO said it had instructed its legal team to issue a letter of demand, as the article in question not only fabricates information but also demonstrates a complete disregard for the principles of responsible journalism.
According to AYO, Paton’s central claim, which alleges a link between the suspension of the Public Investment Corporation’s Chief Investment Officer, Kabelo Rikhotso, and AYO’s delisting process, is “a demonstrable and reckless lie”. The company states that reliable sources privy to the contents of the suspension letter have confirmed that it makes no reference to AYO whatsoever.
“By publishing this fiction, Carol Paton and News24 have intentionally misled the public and inflicted significant damage on AYO, its shareholders, suppliers, and customers,” the statement reads.
AYO has indicated that the article fails to consider crucial facts that would discredit its narrative. These include:
- The PIC has received R1.1 billion from AYO in cash through dividends and share buy-backs.
- The settlement between the PIC and AYO was fully supported and ratified by the PIC’s board.
- No allegations of overvaluation of AYO were substantiated by the PIC’s internal senior executives.
Faced with what it viewed as egregious inaccuracies and selective reporting, AYO felt compelled to proceed with legal action. It has officially demanded that News24 and Paton issue a full, unconditional public apology within 24 hours. Furthermore, the company has requested a permanent retraction of the article.
In the letter of demand, seen by IOL, AYO insists that the apology must include specific admissions of misleading the public, acknowledging that there is no evidence linking the PIC’s Chief Investment Officer’s suspension to any activities involving AYO. Additionally, it is asserted that the failure to seek AYO’s response prior to publication represents a significant journalistic oversight.
Should News24 and Paton fail to comply with AYO’s requests, the company has declared its readiness to pursue legal action to claim damages, stating: “AYO will no longer stand by while its reputation is systematically destroyed by malicious media campaigns.”
The company stated it was prepared to utilise all legal avenues to hold News24 and Paton accountable for what it describes as defamatory lies, insisting on the protection of the interests of its stakeholders.
As the fallout from this dispute unfolds, the media’s role in ensuring journalistic integrity remains a focal point of public concern, and AYO’s actions could set a precedent in the ongoing dialogue about the accuracy and fairness of reporting in the digital age.
IOL
