Feeds

Datatec climbs down over insider dealing fines

Directors flash their own cash

  • alert
  • submit to reddit

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. ®

Related Stories

Datatec directors pay up on insider trading charges
120 jobs losts as Logical exits PC business
Datatec reduces debt with UUNET SA sale

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.