logo

Pinnacle’s share price tumbles on charges against subsidiary

PUBLISHED: Mon, 26 Sep 2016 16:45:01 GMT

Share

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.

READ MOREIs Pinnacle’s reputation at stake?

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”.

Sign Up for Our Newsletter Daily Update

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

READ MORE:Pinnacle’s Tshivhase cleared of bribery charges
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.