Phosa reprimanded over share trade breach
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.”