Datatec climbs down over insider dealing fines
Directors flash their own cash
Two directors of Datatec, the South African-owned networking reseller-cum-distie, are to pay fines of one million rand, (about £80K)imposed for insider dealing, from their own pockets.
CEO Jens Montanana and FD Robin Rindel's initial intentions were for for Datatec itself to pick up the tab provoked a furious attack from South Africa's Financial Services Board.
Jeff van Rooyen told Business Day: "It's disgraceful that directors have passed these fines on to the shareholders and I hope (that) investors will stand up to them."
The fines were intended as a personal punishment, he told the publication.
The insider trading charges followed a collapse in Datatec's share price earlier this year, after Rindel and Montanana told an analyst that the company would fail to meet forecasts.
The duo accepted the fine, without admitting guilt.
Datatec directors are also in hot water with South Africa's financial press following the decision of the board last week to award itself 21m Rand in bonuses for successfully selling its share in UUNET South Africa to Worldcom.
Datatec's main operating units are Logical, a networking reseller, and Westcon, a networking distie. ®