The JSE has rejected a criminal complaint by Mantengu Mining after being accused of manipulating the group’s share price, saying its staff will not be dragged to court over the dispute.
In a statement on Friday, Mantengu accused JSE representatives of borrowing and replacing stocks owned by Mantengu’s largest shareholder to conceal a “naked short”, whereby shares are sold by a trader who has not bought or borrowed them.
The JSE responded in an email to the media at the weekend, saying the allegations directed at its staff were “vexatious and without any merit”.
“The false allegations made by Mantengu do not form the basis for an investigation by the authorities nor will, or could, it ever result in criminal charges being proffered against any of the JSE executives, officers or employees,” the exchange said.
Borrowing and lending with market participants is a common, lawful way to ensure the settlement of a transaction, such as when sellers experience administrative challenges, it said.
“It is therefore speculative and irresponsible to assume that a seller has executed a short sale merely because securities needed to be borrowed to settle the sale transaction.”
Mantengu believes it is being targeted by a syndicate using front companies, including Sable Exploration & Mining and Liberty Coal, to artificially lower its share price and disrupt its growth plans, including the mooted acquisition of Blue Ridge Platinum.
“The company’s investigations have revealed that these fronting companies have shared directors, lawyers and auditors. Mantengu reported its fronting concerns to the JSE but, again, received no support from the JSE,” the group said last week.
Liberty Coal denied that it has any interest in Mantengu’s share price or business activities.
“Liberty, as the owner of the Optimum Colliery coal mining complex, neither trades in nor mines chrome, has no interest in Mantengu, its business or [CEO Mike] Miller, and before Miller during 2024 chose to develop his current fiction to explain the poor performance of Mantengu’s share price, was not even aware of its existence,” it said.
Liberty accused Miller of making “baseless allegations concerning Mantengu’s parlous share performance”.
The Financial Sector Conduct Authority (FSCA) is expected to publish a report on the allegations soon, based on a review of the trading activity in Mantengu shares.
The JSE said it had advised Mantengu to approach the FSCA directly to investigate its complaint and that it remained committed to co-operating with the FSCA in its investigation.
“Mantengu has previously complained to the JSE about alleged share price manipulations and these allegations were carefully considered by the JSE,” a spokesperson for the bourse said.
As tension builds, the JSE has issued a cease-and-desist letter through attorneys Webber Wentzel. In its letter of demand, the JSE condemned Mantengu for prematurely making its complaints public.
“This is unacceptable in circumstances where the basis of the complaints made against our clients are based on conjecture and speculation,” it said.
Mantengu argued that any delay in making its announcement would put the company and its shareholders into a “significant prejudicial position” and the company’s directors at “personal security risk”.
Update: May 13 2025
This story contains comment from Liberty Coal.
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