FSB drops Pinnacle investigation
The Financial Services Board (FSB) investigation into Pinnacle Holdings has been closed, with no action being taken against the company, it was announced on Tuesday (16 September).
“The company was informed today that the Directorate of Market abuse at the FSB, at a meeting on 16 September 2014, decided to close the investigation and no enforcement action will be taken,” Pinnacle said in a statement.
The financial services regulator opened an investigation looking potential insider trading in shares of technology firm in April 2014, following the arrest of a director in March.
The Pinnacle director, Takalani Tshivhase, was arrested on charges bribing a senior police official in order to win a contract for the company. The charges and case against Tshivhase were dropped in August.
Despite the charges being dropped, the news had a significant impact on the company’s performance on the JSE, where it saw its stock price almost halved in the weeks following Tshivase’s arrest.
Pinnacle waited 20 days to announce the arrest, during which time Tshivhase, chief executive Arnold Fourie and another director all sold Pinnacle shares.
Fourie rejected any insider trading at the company.
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