Pinnacle has announced that charges against its executive Takalani Tshivhase have been dropped due to insufficient evidence.
Allegations that Tshivhase attempted to bribe a senior South African Police Service (SAPS) official surfaced in March and he was arrested in the same month. Tshivhase was alleged to have offered the officer R5 million so the company could win a R182 million contract to supply about 3 000 handheld MaxID devices to the SAPS.
In a statement to shareholders today, the company said: "Mr Tshivhase has received written notification from the Specialised Commercial Crime Unit of the National Prosecuting Authority of South Africa (SCCU), that after careful consideration of the evidence at their disposal and consultation with, and evaluation of the reliability of all the state witnesses, the SCCU has come to the conclusion that the evidence presented is insufficient to provide a reasonable prospect of a successful prosecution.
"The charges against Mr Tshivhase will accordingly be withdrawn."
Pinnacle said it welcomed the decision, adding the conclusion and decision of the SCCU corroborates the company's own investigation into the matter and "confirms the company's initial statement" that - from the evidence available - it was "satisfied that there was no reason to doubt the veracity of Mr Tshivhase's denial of the allegations".
"After what has been a most trying time for the company, as well as Mr Tshivhase and his family, the board re-assures all of its stakeholders that [it] continues to practice the highest standards of corporate governance and transparency."
Adverse share effect
Pinnacle's shares went into free-fall in March, when Tshivhase's arrest made headlines, losing 25% on the day from its opening price of R20.
On 26 March, its stock continued to slide, losing another 23.67%, to close at R11.45, dropping its market capitalisation to under R2 billion.
Pinnacle said Tshivhase - who was on leave of absence pending the outcome of the case - will now resume his duties.
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