Attention: The News Editor
Media Release: Insider Trading Directorate: 21 May 2001
Investigation into trading in the shares of Datatec Limited on 13 April 2000
In a press release on 25 April 2001 the Insider Trading Directorate reported that an investigation into certain transactions in the shares of Datatec Limited (Datatec) would be referred for legal action.
The Directorate now reports that, as is provided for in the Insider Trading Act, a settlement has been reached with two directors of Datatec, Mr J P Montanana and Mr R Rindel, who have agreed, without admitting guilt, to pay an amount of R1 million to the Financial Services Board. The settlement relates to an incident on 13 April 2000 when they released a specific item of information to a third party which the Directorate is of the opinion, constituted the disclosure of inside information in contravention of the Insider Trading Act, 1998.
In agreeing to the settlement the Directorate took into consideration that:
· the directors themselves did not benefit from this disclosure;
· the directors appeared to have had no incentive or improper motive to release the information;
· the directors did not sell any Datatec shares on the relevant day; and
· the directors themselves suffered significant loss as a result of the subsequent decline in the Datatec share price.
The Directorate is of the opinion, taking into consideration the mitigating circumstances, that it is unlikely that a court would have applied a harsher sanction.
Legal action against certain other parties is continuing.
Mr Rob Barrow
Chairperson: Insider Trading Directorate
Tel: 012 428-8108
Financial Services Board
P O Box 35655
Menlo Park 0102
Office hours: 7:45 - 16:30
21 May 2001, Pretoria