Business Day

Phosa rep­ri­manded over share trade breach

- MOYAGABO MAAKE Fi­nan­cial Ser­vices Writer maakem@bdfm.co.za Business · JSE Limited · Emerging Markets · Stocks & Markets · Financial Markets · Finance

THE JSE has im­posed a pub­lic cen­sure on Value Group di­rec­tor Matthews Phosa for trad­ing in its shares with­out clear­ance, lead­ing to a six-month de­lay in dis­clo­sure, the bourse says.

Phosa, a former Mpumalanga premier, had no­ti­fied the JSE about his fail­ure to dis­close the trades, said An­dre Visser, the bourse’s GM of is­suer reg­u­la­tion.

“Dr Phosa ad­vised the JSE, via the com­pany’s spon­sor about the omis­sion to an­nounce timeously, as well as the lack of clear­ance,” he said. “The Sens an­nounce­ment dated 9 Fe­bru­ary 2016 also stated that no clear­ance was ob­tained.”

Visser said Phosa had pro­vided com­pre­hen­sive rea­sons for the omis­sion, but re­ferred ques­tions on these to him.

Phosa did not re­spond to the ques­tions sent to him.

In the Fe­bru­ary 9 an­nounce­ment, the Value Group in­formed share­hold­ers Phosa had sold shares in the lo­gis­tics group — worth a col­lec­tive R696,140 — in three trades six months be­fore the com­pany dis­closed them.

He sold the shares be­tween Au­gust 6 and 11 in 2015.

The an­nounce­ment did not have any ef­fect on the group’s share price, which closed slightly higher at R306.02. His fail­ure to dis­close the trades within three days of ex­e­cut­ing them, and with­out clear­ance from the group’s chair­man or other des­ig­nated di­rec­tor, ran foul of the JSE list­ing re­quire­ments.

“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,” said Visser.

“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.”

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