FSB to investigating possible “insider trading” linked to the firing of Pravin Gordhan

11 April 2017

The Financial Services Board (FSB) has confirmed it will investigate possible “insider trading” linked to the firing of former Minister of Finance, Pravin Gordhan, following the cabinet reshuffle triggered by President Jacob Zuma.

There is widespread concern there may have been “insider trading”, and there is some circumstantial evidence to suggest there was “insider trading”, which may have materially benefiting someone with prior knowledge of the former finance minister’s firing.

I, therefore, wrote to the FSB on 31 March 2017 requesting an investigation into possible “insider trading” linked to the firing of the former finance minister.

On 03 April 2017 Advocate Dube Tshidi, the Chief Executive Officer of the FSB, replied that he had instructed Head of Enforcement, Mr. Gerhard van Deventer, “to look into the matter”.

The FSB’s enforcement division, which inter alia investigates alleged market abuse under the Financial Markets Act (No. 19 of 2012), will be responsible for the actual investigation, following a review of various trades being conducted by the Johannesburg Stock Exchange.

We do not have all the facts but we do know senior ANC alliance officials had prior knowledge of the former finance minister’s firing, immediately prior to the event.

Whatever the case we welcome the fact that the FSB have launched the investigation because we have to get to the bottom of whether there was an “insider trading” and whether anybody benefited materially from prior knowledge of the former finance minister’s firing.

Issued by David Maynier, DA Shadow Minister of Finance, 11 April 2017