It is not only in cryptocurrency that the Caisse de depot made a bad bet. Investments it has made in solar energy, beverages and electric scooters are also in bad shape.
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The stock price of Indian company Azure Power Global tumbled more than 65% this week after the announcement of the surprise departure of its CEO, Harsh Shah.
Additionally, Azure has again delayed the release of its most recent annual financial statements due to a “review of its internal control and compliance systems.”
Indian company in trouble
Finally, the solar energy company revealed that it had received denunciations from a whistleblower, which led to the discovery of “manipulation of data and information by certain employees”.
The problem is that the Caisse owns 53% of the shares of Azure. The value of this stake, one of its largest in renewable energy, has shrunk by 82% in one year, from $946 million to just $167 million – a loss on paper of $779 million.
François Dauphin, managing director of the Institute on Governance, notes that preventing fraud perpetrated by employees is not easy, but he acknowledges that Azure should have had more vigilant risk management teams.
Minority on the board
Even though the Caisse de depot owns more than 50% of Azure, it only has two representatives on the company’s board of directors (out of a total of nine members).
“In cases like that, we rely a lot on external auditors, maybe a little too much,” says Mr. Dauphin.
In a statement released earlier this week, Azure’s board tried to reassure investors by saying it “believes that Azure’s business remains fundamentally sound.”
The Caisse did not respond yesterday to requests for an interview from the Log with its vice-presidents of risk management, Claude Bergeron, and infrastructure, Emmanuel Jaclot.
The thrust of the Fund in the renewable coincided with its withdrawal from the oil sector, carried out largely last year, before the surge in crude prices.
Other misfires
The Caisse de depot is also experiencing difficulties with two other notable investments.
She bet US$50 million on urban scooter network Bird in 2019 and US$200 million on health drink maker Zevia in 2020.
Bird’s stock has fallen 95% since going public in November, while Zevia’s stock has fallen 68% since hitting the trading floor in July 2021.