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FSCA fines Tongaat for contravention of the Financial Markets Act
Tongaat Hulett Limited
Registration number 1892/000610/06
Share code: TON
ISIN ZAE000096541
(“Tongaat Hulett” or “the company”)
FSCA FINES TONGAAT FOR CONTRAVENTION OF THE FINANCIAL MARKETS
ACT
The Financial Sector Conduct Authority ("FSCA") has today released a press release
informing the market that it has concluded its investigation and determined that
Tongaat Hulett has breached the provisions of section 81 of the Financial Markets
Act. The breach relates to the misrepresentation by Tongaat of its financial
performance in prior years which resulted in the restatement of the 31 March 2017
and 31 March 2018 financial results. The prior period errors extend back over the
past six years and the cumulative correction has been reflected in the 31 March 2017
financial statements.
The FSCA considered the factors set down in section 167 (2) (a) and (b) of the
Financial Sector Regulation Act, 2019 (the FSR Act) and strived to balance
conjunctively the need for deterrence, Tongaat Hulett’s level of cooperation and the
company’s submissions in respect of an appropriate administrative penalty. The
FSCA noted that Tongaat’s current management gave full cooperation during the
investigation and enforcement process, accepted that the company contravened and
undertook to put measures in place to ensure that the company mitigates the risk of
similar contraventions occurring in the future.
The FSCA imposed an administrative penalty of R118 340 000 (inclusive of costs
reasonably incurred by the Authority in investigating the contraventions) on Tongaat
after due consideration to the factors set out in section 167 of the FSR Act.
Prior to the publication of the above order, Tongaat approached the FSCA and
applied for the remission of the above penalty as provided by section 173 of the FSR
Act. The FSCA considered Tongaat’s application for remission and has agreed to
reduce a portion of the R118 340 000 penalty. The Authority ordered in terms of
section 173 of the FSR Act that Tongaat pay R20 million (inclusive of investigation
costs and interest) as an administrative penalty.
The FSCA thanked the Board and the management team for their cooperation and
assistance to finalise this complex matter.
Tongaat
24 August 2020
Sponsor
Investec Bank Limited
Date: 24-08-2020 10:40:00
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