Mantengu files criminal complaint against JSE execs about alleged share price manipulation

Mantengu Mining (MTU) has filed a criminal complaint with the Hawks against several executives of the Johannesburg Stock Exchange (JSE) regarding allegations of share price manipulation aimed at depressing its stock value, claims that the JSE has roundly denied.

In a voluntary announcement on Friday, directors of the chrome miner said the filing of the criminal complaint followed about 18 months of investigative work by the company and its advisors.

In response to questions from Business Report, the JSE said that the allegations directed at it, its employees, officers, and executives, were false and without merit. The JSE also denied any involvement in, or complicity with, illegal or unlawful activities.

MTU had alerted the JSE to its concerns regarding the manipulation of its share price. The company claims the JSE ignored these concerns and instead chose to investigate MTU for alleged breaches of listing requirements. Also, the JSE allegedly blocked MTU from releasing a SENS announcement intended to warn shareholders about the share manipulation.

Evidence suggested that the JSE may have covered up a naked short on the company's shares by borrowing shares from MTU's largest shareholder to facilitate a trade executed without a proper scrip lending arrangement. MTU’s directors claimed that when they queried this with the JSE, they were met with threats in response.

The JSE said it could not provide full details to BR, but it confirmed it had done an analysis of trading activity in MTU shares after the company had previously raised concerns about share price manipulation.

The JSE indicated that either no evidence of price manipulation warranting a referral to the Financial Sector Conduct Authority (FSCA) was identified, or that the relevant trading is under ongoing investigation by the FSCA.

The JSE had also informed MTU that if the company believed there had been manipulation, it could approach the FSCA directly, which MTU subsequently did.

The FSCA was currently investigating certain allegations of share price manipulation, and the JSE had cooperated fully, providing all necessary information regarding the trades that MTU claimed constitutes manipulation, the bourse said.

MTU said it believed it was being targeted by a syndicate using front companies such as Sable Exploration and Mining and Liberty Coal. MTU's investigations had revealed that these companies share directors, lawyers, and auditors. Despite reporting these concerns to the JSE, MTU claimed it received no support.

The JSE said there was nothing unusual or unlawful in its securities lending and borrowing arrangements with market participants to ensure settlement. It said that its lawful actions were necessary for the proper functioning of the market and did not facilitate any illegal transactions.

In its trading statement released on May 6, 2025, MTU projected its earnings per share (EPS) to be 148 cents, representing a staggering increase of 14 700% compared to the EPS of 1 cent for the year ending 29 February 2024.

The company said its chrome concentrate production had ramped up last year in line with its investment in its two chrome operations. 

MTU said it had announced its share price manipulation concerns because any further delay to do so, could place it and its stakeholders in a prejudicial position. MTU published its trading statement on Monday and issued a warning of share manipulation risk on Thursday.

Production for January and February 2025 was adversely affected by severe flooding. The mining pits had nearly been emptied of water, and an anticipated production of 25 000 tons was expected from June 2025 onwards.

BUSINESS REPORT