PETMIN LIMITED - Petmin Subsidiary, Tendele Coal Mining (Pty) Limited Arbitration Update

Petmin Subsidiary, Tendele Coal Mining (Pty) Limited Arbitration Update

PETMIN LIMITED 
Incorporated in the Republic of South Africa 
Registration Number 1972/001062/06 
Share Code JSE: PET
ISIN: ZAE000076014 

("Petmin" or the "Company") 

PETMIN LIMITED - PETMIN SUBSIDIARY, TENDELE COAL MINING (PTY) 
LIMITED ARBITRATION UPDATE 

Shareholders were advised on 21 May 2015 as published on SENS, that Petmin's 
subsidiary Tendele Coal Mining (Pty) Limited, had withdrawn from the arbitration with its 
customer, as described in Note 13 of Petmin's December 2014 Interim Financial 
Statements published on Sens on Tuesday 24 February 2015 and would seek declaratory 
relief from the High Court that the contract concerned is void. "This course of action has 
been taken due to information recently coming to Tendele's and Petmin's attention during 
the course of the arbitration proceedings which is being considered and dealt with by 
Petmin".

The arbitration dealt with claims as described in Note 29 of Petmin's Annual Financial 
Statements for June 2013, Note 28 in Petmin's Annual Financial Statements for June 2014 
and June 2015 and as described in Note 11 of Petmin's December 2013 Interim Financial 
Statements, Note 13 of Petmin's December 2014 Interim Financial Statements and Note 14 
of Petmin's December 2015  Interim Financial Statements .

Petmin, after investigation established incidents of fraud, bribery and corruption in 
connection with the conclusion of the contract for the sale of discard product to the 
customer entered into in October 2012 that entitled it to avoid (cancel). Supply under the 
contract was halted in May 2013.

These incidents have been substantiated by an admission of fraud, bribery and corruption 
which occurred during the period October 2012 to May 2013. Petmin and Tendele 
furthermore reported the fraud, bribery and corruption to the Directorate of Priority Crime 
Investigation on 17 August 2015 in terms of the Prevention and Combatting of Corrupt 
Activities Act 12 of 2004.

Tendele instituted an action in the High Court in September 2015 to have the contract 
declared void on the grounds of fraud, bribery and corruption and to recover damages 
suffered by Tendele. Tendele and its legal advisers believe that it has good prospects of 
succeeding in this action. The setting aside of the contract will confirm the invalidity of the 
arbitration as well as any award made in the arbitration.

Notwithstanding Tendele's withdrawal from the arbitration and institution of the High 
Court action on the grounds of fraud, bribery and corruption, the arbitration continued on 
an uncontested basis, despite requesting the arbitration to be postponed pending the 
outcome of the High Court action.

On 2 December 2015, the arbitrator delivered an award against Tendele, and specifically 
disregarded material evidence presented by Tendele up to and until the point of its 
withdrawal from the arbitration.

Tendele maintains that this award is invalid and the customer had been notified that 
Tendele will vigorously oppose any approach to the High Court to enforce the award given 
the High Court action to have the contract declared void or voidable on the grounds of 
fraud, bribery and corruption.

In addition, the award itself is reviewable by a High Court.

As Tendele and its legal advisors believe that the prospect of success in the High Court 
action to declare the contract void is good, no liability will be recorded in relation to the 
award made by the arbitrator. Furthermore, this award has no impact on the operational 
performance of Tendele. 

Petmin will continue to update its shareholders. 


Enquiries:
Petmin
Bradley Doig +27 824 597 818
www.petmin.co.za

JOHANNESBURG
3 December 2015
JSE Sponsor and Corporate Adviser
River Group






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