Johannesburg - South Africa's financial services regulator is investigating potential insider trading in shares of mid-cap technology firm Pinnacle Holdings, a senior official said on Tuesday.
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.”
A 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, a charge he has denied.
However the company waited 20 days to disclose the arrest, during which time Tshivhase and other directors sold Pinnacle shares. - Reuters