Johannesburg - Former ANC treasurer-general Mathews Phosa has been fingered in an insider trading scam after it has emerged that he broke the JSE’s trading regulations.
The bourse said it had publicly censured the former Mpumalanga premier in his capacity as a director of the listed logistics company Value Group for trading in securities.
Phosa, who is a leading businessman and chancellor of Unisa, is one of the most vocal critics of Jacob Zuma.
The JSE said it had found Phosa to be in breach of its regulations requiring directors who deal in securities to disclose the information by no later than three business days after dealing.
The JSE said Phosa was particularly in breach of paragraphs 3.65 and 3.66 of the listings requirements.
Requirement 3.65 reads: “The issuer must in turn announce such information without delay and, in any event, by no later than 24 hours after receipt of such information from the director concerned.”
Requirement 3.66 reads: “A director (excluding any of his/her associates) may not deal in any securities relating to the issuer without first advising the chairman (or one or more other appropriate directors designated for this purpose) in advance and receiving clearance from the chairman or other designated directors.”
The JSE said on August 6, 7 and 11 last year and as announced on the SENS in February, Phosa had traded in Value Group securities without the required clearance and failed to disclose the trades timeously.
“The JSE has decided to impose this public censure against Dr Phosa in relation to the above-mentioned breaches of the listings requirements.”
Requirements
Andre Visser, the general manager of issuer regulation at the JSE, said: “One of the most important motivations behind the JSE’s listing requirements is to ensure that all investors have access to relevant company events and changes. When directors buy or sell shares in a group, it is something that investors need to know as it could impact on their own buy or sell decisions. The listings requirements are all about ensuring market transparency.”
Phosa said yesterday that he was sorry for breaching the rules. “I have no comment to make except to say as law-abiding citizens, we all have to abide by the rulings of the authorities or the courts.”
The bourse said it was alerted to the breach of the listing requirements when Phosa advised the JSE, via the company’ sponsor, about the omission to announce timeously, as well as the lack of clearance. It said the February SENS announcement also stated that no clearance was obtained.
“The investigation process began as soon as the JSE was notified of the breaches and due investigative process was followed, which included several opportunities for Dr Phosa to respond to the JSE’s enquiries and requests for further information.”
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