Shares drop as US law firm announces investigation into Naspers
Included in the investigation will be allegations that MultiChoice paid millions to the SABC and ANN7 in exchange for political influence in the ongoing digital migration saga.
JOHANNESBURG - Shares in Naspers are down over 4% after a United States law firm announced it was launching an investigation into the conglomerate.
Reports say the investigation will involve various irregularities.
Included will be allegations that MultiChoice paid millions to the SABC and ANN7, formerly owned by the Guptas, in exchange for political influence in the ongoing digital migration saga.
Naspers, which owns a large portion of MultiChoice, issued a statement last Friday saying the persistent baiting for the group to intervene in the affairs of MultiChoice is not conducive to an open democracy.
US law firm Pomerantz has confirmed it is now investigating whether Naspers and its directors engaged in security fraud or other unlawful business practices.
The probe is being carried out on behalf of shareholders in Naspers and it's now being reported there could be a class action lawsuit.
Former Communications Minister Yunus Carrim says he has no doubt that Naspers and MultiChoice tried to sway government on the digital migration matter.
The Independent Communications Authority of South Africa, meanwhile, says it's still deliberating whether or not it will investigate.