Mantengu hits back at JSE after being censured and fined

Mining investment company Mantengu has hit back at the JSE after being censured last week and fined R100 000 for making what the exchange described as “speculative and unverified” claims of share price manipulation.

The allegations of share price manipulation, published on Sens by Mantengu, were not baseless, says the company.

At the time they were published, Mantengu was in possession of written correspondence from two shareholders “who had allegedly been approached by Standard Bank Online Share Trading – purportedly acting on behalf of the JSE – to lend 1.842 million MTU shares to settle an unmatched trade.”

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Mantengu adds that it is also in possession of a draft securities lending agreement, purportedly signed on behalf of the JSE, which confirms the proposed borrowing of those shares.

The company says this is supported by written confirmation from Standard Bank that the shares would be returned after one of the affected shareholders raised concerns that shares had been transferred out of her account without permission.

In May 2025, Mantengu lodged a criminal complaint with the Hawks, alleging that a sophisticated criminal syndicate had conspired to drive its share price down for the purposes of disrupting the company’s growth strategy.

JSE defends findings

The JSE previously responded to the scrip lending allegations, stating that “securities lending/borrowing for settlement is standard market practice and does not equate to illegal naked shorting or manipulation”.

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The exchange said it had investigated the matter and found no evidence warranting action.

The Financial Sector Conduct Authority (FSCA) had also conducted its own investigation and made no adverse findings against the JSE.

FSCA finds no evidence of naked shorting at Mantengu Mining

In a media statement issued on Wednesday, 3 June 2026, Mantengu said the fine of R100 000 was reduced from R500 000 after the company lodged an objection. The JSE partially upheld Mantengu’s objection and reduced the fine accordingly.

“The published censure notice makes no reference to this process whatsoever. Mantengu considers the JSE’s lack of transparency in this respect to be significant,” the company said.

Mantengu went on to say that this “further illustrates the structural problem with the JSE acting as investigator, prosecutor, adjudicator and publisher of outcomes in a matter directly involving its own conduct.”

The company maintains that it is obliged to publish price-sensitive information and that decisions regarding such disclosures rest with the board rather than the JSE.

Disclosure of price-sensitive information

According to Mantengu, the board has a duty to ensure that price-sensitive information is disclosed to all shareholders promptly and on an equal basis.

Where there is doubt, JSE practice notes encourage boards to publish the information rather than remain silent to avoid selective disclosure that could result in confusion in the market.

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“The Mantengu board, acting on documentary evidence of what appeared to be an attempt to borrow and settle shares in its highly illiquid stock without shareholder consent, unanimously concluded this information was price-sensitive and had to be disclosed immediately.

“The company’s position at the time, and its present position, is that the statements were not speculative but grounded in events and documents within Mantengu’s knowledge.

“Withholding that information would have left shareholders trading in the dark while others had access to material facts,” said the company.

The company said it did not retract the statements as it believed doing so would itself have misled shareholders by implying that the documented events had not occurred.

Legal action being considered

Mantengu further said that it has been forced to seek legal advice on a way forward, which could include approaching the Financial Services Tribunal, the high court, or both.

“Mantengu remains committed to robust corporate governance, timely and accurate disclosure where required, and the protection of shareholder interests. The company will continue to cooperate with regulators and seek professional advice to ensure compliance with its obligations under the Listings Requirements,” said chief executive Magen Naidoo.

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