Pinnacle speaks out on FSB probe
Listed technology firm Pinnacle Holdings has confirmed that the Financial Services Board (FSB) has launched an investigation into possible insider trading.
Pinnacle director Takalani Tshivhase was arrested in March on charges he offered a bribe to a senior police official in order to win a contract for the company. Tshivhase has denied the charges and Pinnacle says it has no reason to doubt him.
However, the company waited 20 days to announce the arrest, during which time Tshivhase, chief executive Arnold Fourie and another director all sold Pinnacle shares.
Solly Keetse, the head of the Department of Market Abuse at South Africa’s Financial Services Board, told Reuters the regulator had launched a formal investigation into “possible insider trading in the shares of Pinnacle.”
He declined to say if the FSB was specifically looking at Tshivhase and Fourie, adding it was investigating potential insider trading “prior to the publishing of the information about Mr Tshivhase’s arrest.”
In a note on SENS on Wednesday (30 April), Pinnacle said: “The Company wishes to advise shareholders that the Financial Services Board (FSB) has
registered an investigation in terms of section 84 of the Financial Markets Act, Act 19 of
2012 (FMA), relating to a possible contravention of section 78 of the FMA.
“The investigation relates to share transactions in the company executed during March 2014 and may be extended, if necessary,” it said.
The technology firm stressed that the investigation is not into the affairs of the company.
“The FSB have advised that when the investigation is completed it shall be reported to the Directorate of Market Abuse who will then decide whether to close the investigation, or proceed with enforcement action. Shareholders will be informed in this regard,” it said.
Pinnacle said it will cooperate fully with the FSB in respect of the investigation.
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