Pinnacle CEO: Bribery charges a surprise
Arnold Fourie says the arrest of company executive Takalani Tshivhase was not expected.
JOHANNESBURG - Pinnacle Holdings CEO Arnold Fourie said no one had any idea one of its executives was allegedly involved in bribing a police officer to secure a tender.
Takalani Tshivhase was arrested on 5 March after allegedly offering a R5 million bribe to a member of the South African Police Service to secure a multimillion contract over a year ago.
Tshivhase appeared in court on Monday.
Since then, the company's share price has dropped by more than 40 percent.
Fourie said the company has taken a serious knock.
"This is really sad for the shareholders, but also for management and staff to see the vote of no confidence. All we can do right now is put all hands on deck and make sure we focus on the business."
At the same time, Fourie said he didn't believe that Tshivhase quick move to sell off his shares constituted insider trading.
Tshivhase sold R4 million worth of shares just days before the news about his charges emerged.
Fourie said because Tshivhase only appeared in court this week, there was no information that would affect the company's performance or share price.
Fourie added that it was not necessary to disclose the information sooner.
He said his company doesn't condone these types of dealings.