The Financial Sector Conduct Authority (FSCA) has dismissed serious allegations of share price manipulation raised by Mantengu Mining Limited, concluding that the transactions in question were lawful and did not amount to any prohibited trading practices.
The findings have been welcomed by Liberty Coal, one of the primary companies implicated by Mantengu, which described the claims as “baseless, ill-conceived, and meritless”.
Mantengu’s initial complaint, lodged earlier this year, centred around a series of transactions and orders placed in January 2024, which the company believed were orchestrated by a consortium to drive its share price downward.
Specific transactions and orders
“In the initial complaint received from Mantengu, it identified specific transactions and orders placed in January 2024, which it believed constituted prohibited trading practices by a group of people intending to manipulate its share price downwards,” the FSCA’s May 23 statement reads.
The complaint was later expanded as Mantengu provided “further details of additional transactions and orders which it believed were also prohibited trading practices by the same consortium”.
The last set of alleged manipulative transactions was reported to have occurred on August 16, 2024.
After a “thorough investigation”, the FSCA firmly concluded that the transactions and orders identified by Mantengu were “lawful securities transactions in the ordinary course of business”.
Lawful securities transactions
The authority stated: “After a thorough investigation, the FSCA concluded that the transactions and orders identified by Mantengu were lawful securities transactions in the ordinary course of business.”
Mantengu had also alleged that 387,044 of its shares were subject to naked short selling during the first week of June 2024. However, the FSCA found these transactions did not constitute “uncovered short sales”.
The authority further addressed reports that Mantengu had laid criminal charges against the Johannesburg Stock Exchange (JSE) and some of its staff.
“Regarding the specific transactions investigated by the FSCA, the authority found no reason to suspect improper conduct by the JSE or any of its officials,” the statement clarified.
Another party named in Mantengu’s accusations, Liberty Coal, responded strongly to the FSCA’s findings.
“Liberty Coal welcomes the Financial Sector Conduct Authority’s (FSCA) findings, announced on Friday, confirming that no evidence was found to support the serious allegations made by Mantengu Mining Limited of price manipulation by various persons, including Liberty Coal, and that no enforcement action will be taken,” the company said in a media statement issued by media strategist Gia Nicolaides.
‘Recklessly pursued and advertised’
Liberty Coal criticised Mantengu and its CEO, Mike Miller, for pursuing and publicising the allegations. It called them “recklessly pursued and recently advertised…without any factual foundation, to publicly embarrass and cause reputational harm to, among others, Liberty Coal and its leadership.”
The company argued that Mantengu’s actions were an attempt “to divert attention from its failure to meet the expectations of its shareholders despite an unprecedentedly buoyant international chrome market in recent years.”
The FSCA emphasised its commitment to supporting further investigations by other enforcement authorities. That is if they decide to pursue criminal complaints laid by Mantengu. “Should the relevant enforcement authorities decide to investigate the criminal complaint(s), the FSCA will provide its full support and cooperation,” the FSCA stated.
Liberty Coal expressed confidence in the independence and rigour of the FSCA’s process.
Probe was thorough and independent
“Liberty Coal is confident that the FSCA’s investigation process into Mantengu’s claims was both thorough and independent. And it is an important step toward restoring integrity to the media conversation and protecting the market from harmful misinformation.”
Both the FSCA and Liberty Coal reaffirmed their willingness to cooperate fully with any ongoing or future investigations into the matter.
