Pinnacle’s share price tumbles on charges against subsidiary

Pinnacle’s major subsidiary, Pinnacle Micro (formerly Pinnacle Africa), has been mentioned in the charging and court appearance of Brigadier-General Leon Eggers of the South African Defence Force. Eggers is accused of favouring Pinnacle’s subsidiary and another supplier in the award of business. The news sent Pinnacle’s share price tumbling by 17 per cent.

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In a Sens statement Pinnacle said its subsidiary “dealt with Eggers and the Department over a number of years and in the same manner as any other customer”.

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The technology group advised that its subsidiary invited customers to many events, including sporting events, at its expense but never requested nor expected nor received, any special treatment or favours from any of its customers, in return for any such entertainment provided.

In 2014 the technology company was accused of an alleged R5 million bribe to secure a R1.6 billion tender with the SAPS. The charges were later dropped due to insufficient evidence.