Pinnacle shares crushed on bribery charge
Shares in Pinnacle Holdings declined by as much as 20% in afternoon trade on the JSE on Tuesday, after it was revealed that an executive director, Takalani Tshivhase, was arrested on bribery and corruption charges.
Shares in the technology company fell 20.5%, or R4 to R15.99 on the local bourse shortly after 14:00.
Tshivhase is accused of allegedly offering a lieutenant general in the technology management environment of the SAPS R5 million to secure a multimillion rand tender for his company.
The lieutenant general’s office had advertised the tender.
Tshivhase reappeared in the Pretoria Specialised Commercial Crimes Court on a charge of corruption and his case has been postponed to 24 April 2014 for further investigation, the SAPS said in a media statement.
The Pretoria-based Serious Economic Offences Unit of the Directorate for Priority Crime Investigation (DPCI), the Hawks, arrested Tshivhase at his office in Kempton Park on 5 March 2014.
He was released on R10,000 bail the same day.
Thshivase has filled a number of directorship roles at South African tech companies, including as a current director of Pinnacle Holdings and a consultant for Business Connexion, and a former role as independent non-executive director of Datacentrix Holdings.
The SAPS previously contracted Pinnacle to provide field terminals or Maxid/MaxID units. The units are electronic handheld devices used by the police for investigation purposes.
“This arrest should serve as a reminder to companies doing business with government that corruption is not an option in securing business deals,” said the National Head of the Hawks, Lieutenant General Dramat.
In a SENS announcement, Pinnacle advised shareholders that Tshivhase denies all allegations of attempted bribery, and will defend the charges.
“From the evidence thus far available to the Company, the Company is satisfied that there is no reason to doubt the veracity of Mr Tshivhase´s denial of the allegations,” it said.
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