Two CEO resignations in two months at prominent JSE-listed company

Stafford Masie has tendered his resignation as CEO of Africa Bitcoin Corporation (ABC), with his final day of service being 28 February 2027.

This comes a month after the shock resignation of CEO Warren Wheatley following the Financial Sector Conduct Authority (FSCA)’s disbarment. 

The FSCA also disbarred the company’s chief investment officer, Akshay Karan, and Wheatley’s wife, Tatum, who was the head of BAC’s media and investor relations. 

This group of executives was found by the FSCA to have artificially inflated Altvest’s share price in 2022, before it became ABC. 

“The FSCA’s investigation found that the parties contravened section 80 of the Financial Markets Act (FMA),” the FSCA said.

This section prohibits anyone from creating a misleading, false, or deceptive impression regarding the market volume, supply, demand, or price of a listed security.

Simply put, the section prevents people from trading shares solely to push the price lower or higher, or to artificially make it look more active.

Wheatley has denied this and said he would apply to the Financial Services Tribunal to reconsider the decision of the FSCA. 

In an open letter, he said he would ask for the sanction to be suspended while the Tribunal reconsiders the case. 

Wheatley has said the transactions in question where a test of a stock trading platform that had historically not worked properly. 

“During the testing, three trades for a combined 50 shares worth a total of R301.00 were executed. That was the total of the sale price received, and I have not since sold shares in the company,” he said.

During this time, Masie had stepped in as interim CEO to maintain the continued operation of ABC and help it find a permanent executive team.

Masie has made it clear that the company would not fund Wheatley’s appeal to the Financial Services Tribunal.

Wheatley comes back

Wheatley, in his open letter, made it clear that he was not willing to watch ABC from the sidelines as he and his wife poured capital and effort into building the company. 

He said that his absence as the company’s leader is not in ABC’s best interests, which requires active leadership. 

On 8 October, WGW Capital Proprietary Limited sent a letter to ABC’s board demanding a shareholders’ meeting to vote on the appointment of two new non-executive directors. 

WGW is Wheatley’s investment vehicle and made the demand with the backing of shareholders who own 76% of ABC. 

ABC’s board is yet to reveal the details of the two proposed candidates. However, there is speculation that it would be Wheatley and his wife. 

The board made it clear in its announcement that it does not support the proposed appointments.

“The board’s position should not be interpreted as a general comment on the professional experience or capability of the proposed candidates,” it said. 

“Rather, the board’s concern relates primarily to governance and regulatory integrity, given the exceptional circumstances currently facing the group.” 

Early on Monday, 12 October, ABC announced that it had received a slew of resignations from its board and that Masie will be stepping down as interim CEO. 

Following the board’s receipt of the demand, the following members resigned immediately: 

• Norma Sephuma, Independent Non-executive Chairperson and member of the Group’s Audit and Risk and Social and Ethics Committees
• Stafford Masie, Executive Director and member of the Group’s Social and Ethics Committee
• Snowy Masakale, Independent Non-executive Director and member of the Group’s Audit and Risk, Remuneration and Nomination Committees
• GG Alcock, Independent Non-executive

“The company wishes to express its sincere appreciation to the relevant individuals for their service, leadership and commitment, particularly during the recent exceptionally challenging period in the group’s history,” the board said.