Pinnacle Holdings: Bribery charge knocks share price

An executive director of Pinnacle Holdings had been charged with offering a R5 million bribe to a senior SAPS official to win an equipment contract for the listed technology company, police said yesterday. Takalani Tshivhase had allegedly offered the bribe to a lieutenant-general in exchange for a multimillion-rand contract to supply devices used in investigations, the SAPS said. The director, who has denied the charges, was arrested by the elite Hawks unit earlier this month and was released on bail the same day. His court case was postponed until April 24 to allow for further investigation, police said. Pinnacle said there was “no reason to doubt the veracity” of Tshivhase’s denial, based on the evidence available to the company. Shares of Pinnacle, which makes and distributes computer hardware and software, fell as much as 31 percent yesterday before closing 25 percent lower at R15. – Reuters