Mantengu Disputes FSCA Findings on Share Manipulation Probe

After months of investigation, South Africa’s financial regulator has cleared the JSE and other parties of wrongdoing in Mantengu Mining’s allegations of market abuse. But the mining company isn’t satisfied — and says the probe missed crucial evidence.

The Financial Sector Conduct Authority (FSCA) announced that it found no proof of illegal “naked short selling” in Mantengu’s shares, a practice banned in most markets. It also saw no signs of misconduct by the JSE or its officials. However, Mantengu is pushing back, claiming the FSCA’s review was too narrow and did not fully examine its complaints.

Mantengu had alleged a coordinated attempt to manipulate its share price, supposedly to sabotage its acquisition of Blue Ridge Platinum in October 2024. It claimed a “fronted syndicate” — involving former executives, Liberty Coal, and even certain JSE officials — was behind suspicious trading. All those accused have strongly denied the claims and threatened legal action, calling the accusations defamatory and baseless.

FSCA: No Evidence of Wrongdoing

The FSCA said it began its inquiry after Mantengu filed a complaint about suspicious trades and potential insider activity. While the seriousness of the allegations prompted a full investigation, the regulator concluded that the transactions identified were routine and legal.

“Naked shorting” — where shares are sold without being borrowed or owned — was also ruled out after scrutiny of over 387,000 Mantengu shares traded in early June 2024. The FSCA said the trades were covered and didn’t breach regulations.

In response to media coverage, the FSCA clarified it had not found any prima facie case for further investigation — a claim Mantengu had previously made.

Mantengu Fires Back: ‘Too Little, Too Narrow’

Mantengu wasn’t convinced. In a statement released late Sunday, the company criticized the FSCA for only reviewing nine months out of a 24-month period and for focusing mainly on short-selling, rather than broader, systemic manipulation.

CEO Mike Miller said the probe ignored key digital evidence seized under court order and didn’t address shareholder reports of suspicious borrowing requests.

He emphasized that the company is not trying to undermine the JSE or FSCA but is committed to exposing gaps in governance and market oversight. “We are not attacking institutions — we’re seeking market integrity,” said Miller. He also hinted that several other listed companies have voiced similar concerns, highlighting a broader issue.

Next Steps: Legal Review Possible

Mantengu is now awaiting the full FSCA report and may seek a High Court review of the findings, depending on legal advice. It insists the outcome won’t derail its existing criminal complaint, which is still under investigation by the Hawks.

The JSE, for its part, maintains that it did investigate Mantengu’s claims internally and found no reason to escalate them to the FSCA — except in cases already under regulatory scrutiny.

As the legal and regulatory dust settles, one thing is clear: Mantengu isn’t backing down. It believes the issue goes deeper than what’s been uncovered so far — and wants the system to look harder.

{Source: Money Web}

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