Takalani Tshivhase, who is charged with bribing a policeman with R5 million in a bid to secure a tender worth R182 million, was representing his company at the time, the Hawks say.
Tshivhase is an executive director of the JSE-listed distribution company and this week again appeared in court on a charge of corruption. The matter has been postponed to 24 April for further investigation.
Hawks spokesman, captain Paul Ramaloko, says Tshivhase was representing Pinnacle when he tried to persuade the South African Police Service to buy around 3 000 movement control devices, each worth R64 000.
Tshivhase was trying to persuade the police to take MaxID units off Pinnacle's hands, says Ramaloko. MaxID units are handheld devices used by the police for investigation purposes and store information related to crimes, and are distributed locally by Pinnacle.
Ramaloko says, if Pinnacle had won the order, it would have meant "something good" for the company. Pinnacle turned over R3.2 billion in the six months to December, and ended the period with a profit of R163.3 million.
Trial to be set
The news of Tshivhase's arrest sent Pinnacle's stock 25% lower as it lost R5 on the day to close at R15, a new 52-week low. Its market capitalisation is now R2.5 billion.
Pinnacle announced Tshivhase's charges yesterday in a statement to shareholders. It did not provide much detail and said it would review the matter as further information becomes available, and inform shareholders accordingly. ITWeb has tried unsuccessfully to obtain comment from its CEO, Arnold Fourie.
The group said in its statement that the alleged bribery took place about 14 months ago, around 16 January last year.
Tshivhase was arrested earlier this month after allegedly trying to bribe a divisional commissioner in the SAPS' technology unit at a gala dinner, says Ramaloko. He explains the officer holds the second-highest rank within the police service and is a lieutenant general.
Ramaloko adds the 59-year-old suspect is out on R10 000 bail and the case will be heard at the Pretoria Specialised Commercial Crimes Court. He says the Hawks are confident of a conviction as "we are sure about our facts".
National Prosecuting Authority spokesman Medupe Simasiku adds a trial date has yet to be set. He says the penalty for such charges depends on the court and the nature of the crime, but if policemen are found guilty of the offence, they face 15 years behind bars.
Tshivhase has denied the allegations, according to a statement issued by Pinnacle to its shareholders yesterday. "From the evidence thus far available to the company, the company is satisfied that there is no reason to doubt the veracity of Mr Tshivhase's denial of the allegations," it says.
Investigations are ongoing to determine whether any other people are involved, says Ramaloko.
"This arrest should serve as a reminder to companies doing business with government that corruption is not an option in securing business deals," said Anwa Dramat, national head of the Hawks.
Pinnacle's Web site notes Tshivhase joined the company in 2003, after a "successful and varied career in government and commerce".
It adds: "During his tenure at Pinnacle, he has demonstrably contributed to the growth and success of the Pinnacle Group through the successful penetration of key accounts, operational management and strategic direction."
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