File picture: James White
JOHANNESBURG - The financial Sector Conduct Authority (FSCA) has cleared directors and related parties of Resilient Reit, Fortress, Lighthouse Capital and NEPI Rockcastle plc of allegations of supporting the NEPI Rockcastle plc share price during the period October 1, 2017 to February 28, 2018, the period under investigation. 

This comes after an investigation by an FSCA division that had been looking into allegations of share price manipulation and other prohibited trading practices by directors of Nepi Rockcastle. Nepi Rockcastle was part of the Resilient group of companies along with Resilient, Fortress and Lighthouse Capital, which together lost more than R100billion last year in the biggest scandal to hit the listed property sector. 

At the beginning of 2018, the companies suffered a sudden sell-off in their shares followed by the release of numerous reports by hedge-fund and asset managers which made allegations that directors and management at the companies had used interrelated party deals and share price manipulation to enhance profits. The FSCA said it found no evidence that the share trades completed contravened section 80 of the Financial Markets Act 19 of 2012 relating to prohibited trading practices (price manipulation).