Pinnacle, which saw its share gain more than 18% today after two days of heavy losses, does not affect any of Datacentrix's operations, says CEO Ahmed Mahomed.
The group, which owns almost 35% of JSE-listed Datacentrix, saw its shares lose almost half their value on Tuesday and Wednesday after it said executive director Takalani Tshivhase had been charged with attempting to bribe a senior police official to secure a lucrative contract.
Tshivhase has since asked to take an immediate "leave of absence" until criminal proceedings around his alleged attempt to bribe a police officer have been wrapped up. He was charged on Monday with attempting to bribe a senior South African Police Service official with R5 million so the company could win a R182 million contract to supply about 3 000 handheld MaxID devices.
The handheld hardware is used by the police for investigation purposes and to store information related to crimes, and is distributed locally by Pinnacle. Pinnacle says once the matter has been resolved, "Tshivhase's association with the company can be reviewed".
Today, the stock price recovered some of its lost ground, adding 18.6% to close at R13.58. The shares closed at R20 on Monday, the day before the news around the charges hit.
Mahomed says Pinnacle is a separate listed company and has no involvement in Datacentrix's operations. He adds it is "business as usual" and Tshivhase only has a non-executive director role with the firm.
Pinnacle bought almost 35% of Datacentrix in a more than R200 million deal, in the middle of last year. Pinnacle's move was prompted by its desire to work out if there is potential to create a working relationship in the future, as it seeks to move up the IT value chain.
Despite the charge implicating the company, Pinnacle CEO Arnold Fourie has not returned several messages seeking comment. In yesterday's statement to shareholders, the group says the matter is now sub judice and it would not be proper for it to comment further.
Pinnacle says based on the available evidence, "it has no reason to doubt the veracity of Tshivhase's denial of the allegations of any impropriety".
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