South African mining company files criminal complaint against JSE executives

Johannesburg-based Mantengu Mining (MTU) announced today that it has filed a complaint against JSE executives for alleged share price manipulation with the Hawks.

Mantengu is a resource investment company focused on unlocking new value in the mining, mining services, and energy sectors.

The mining company announced via SENS on Friday, 9 May, that it filed a criminal complaint with the Hawks in connection with alleged share price manipulation aimed at depressing Mantengu’s share price. 

“The filing of the criminal complaint is the culmination of approximately 18 months of investigative work by the company and its various advisors,” it said.

The company explained that it had alerted the JSE in respect of its concerns about share price manipulation.

However, the JSE allegedly ignored the company’s concerns and instead investigated Mantengu for alleged breaches of certain Listings Requirements. 

“The JSE also blocked MTU from releasing a SENS announcement intended to warn shareholders of share manipulation in early 2024,” it claimed.

The company also claims to have evidence that suggests the JSE covered up a naked short on the company’s shares by borrowing shares from MTU’s largest shareholder.

This was allegedly done to ensure that a trade – a short on MTU shares without any scrip lending arrangement in place – was executed, and the borrowed shares were replaced shortly thereafter. 

“When MTU queried this with the JSE, the JSE chose to threaten MTU in its response,” the company alleged.

Mantengu believes it is being targeted by a syndicate using front companies such as Sable Exploration and Mining (SEAM) and Liberty Coal.

“One of the objectives in using these fronting companies was to conceal the ultimate beneficial owners of them,” Mantengu claimed. 

“The company’s investigations have revealed that these fronting companies have shared directors, lawyers and auditors.”

“MTU reported its fronting concerns to the JSE but, again, received no support from the JSE.”

Claims of a disconnect

In a recent trading statement, Mantengu indicated that it expects to report earnings that are significantly more than its market capitalisation at the time of the trading update. 

“The company believes that this disconnect stems largely from alleged share price manipulation,” it said.

“The company wants to make the point that the JSE has at no stage provided any tangible support to support MTU’s legitimate concerns.”

Mantengu said it does not wish to make its legal case in this SENS announcement. Instead, it wishes to inform its shareholders of the significant work that its board and their advisors and experts have done.

“As previously communicated, the company will pursue all legal avenues to restore fair valuation and will keep shareholders updated with developments,” it said.

Mantengu also mentioned in the SENS announcement that it is aware of the possible negative perceptions that may result from this announcement. 

However, it said it believes that financial markets and the investing public should view its decision to make an announcement of this nature as testament to its unwavering commitment to transparency, integrity, compliance, and all-around good corporate governance. 

“Mantengu’s board is also of the view that any delay in making this announcement would result in the company and its stakeholders being put into a significantly prejudicial position and the company’s directors at personal security risk,” it said.

This comes after, in October 2024, when Mantengu claimed its share price is being manipulated downwards, with the company saying it is pursuing both civil and criminal legal action.

The Mantengu board said it was convinced its shares are being manipulated downwards. It followed a similar claim in February 2024.

The company’s share price is up around 3.45% on Friday, 9 May 2025, at around 13:00.

JSE response

The JSE told Daily Investor that it denies being a party to or “complicit” in any form of illegal or unlawful activity. It said Mantengu’s allegations in this respect are “false and rejected”.

“The JSE upholds the highest standards of market integrity, transparency, and investor protection by enforcing rigorous listing requirements and exchange rules, monitoring trading activities, and ensuring fair and orderly markets,” it said.

“The JSE works closely with the Financial Sector Conduct Authority (FSCA) and other regulatory bodies to detect and deter market abuse, support corporate governance, and maintain public confidence in the financial markets.”

The JSE said Mantengu’s allegations, which are directed at the JSE and its employees, officers and executives, are false and without any merit.

Notably, the exchange said there are no direct facts alleged, or supporting documents attached, which relate to the alleged unlawful conduct of the JSE, its executives, officers and/or employees.

In addition, it said false allegations and statements 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 and/or employees.

“Even a cursory examination of the relevant facts will clearly indicate that the contents of the ‘criminal complaint’ insofar as it relates to the JSE’s involvement are vexatious and without any merit,” it said.

The JSE confirmed that it would assist the prosecuting authorities and provide any information they may require to investigate the criminal complaint.

The exchange said it has full confidence in the safeguards enshrined in the Constitution that protect innocent individuals against false accusations and malicious and unfounded criminal complaints. 

The JSE further confirmed that Mantengu has previously complained to the JSE about alleged share price manipulation.

It said these allegations were carefully considered after reviewing the trading activity in Mantengu shares. “Either no evidence of possible price manipulation warranting a referral to the FSCA by the JSE was identified through these reviews,” it said.

This finding was conveyed to Mantengu, and the relevant trading activity is the subject of an ongoing investigation by the FSCA. 

The JSE also informed Mantengu that if it believed its share price had been manipulated, it could approach the FSCA directly, as the appropriate body, to investigate its complaint, which Mantengu did. “The JSE will await the outcome of the FSCA investigation,” it said.

In terms of Mantengu’s numerous SENS announcements alleging share price manipulation, the JSE confirmed that it does not approve SENS announcements, nor does it verify that the contents of SENS announcements are correct and accurate before their publication by an issuer.

“It is the responsibility of the issuer and its sponsor/designated adviser to ensure that SENS announcements comply with the applicable listings requirements prior to release and are correct and accurate,” it explained.

It said Mantengu’s advisors approached the JSE in connection with a proposed SENS announcement during February 2024, which contained allegations of share price manipulation.

The JSE said it advised Mantengu’s advisors that the proposed announcement did not comply with the terms of the Listing Requirements and therefore could not be released on SENS.

However, the JSE said it was not approached by Mantengu’s designated advisor regarding the most recent SENS announcement that has been published.

“The JSE is considering the contents and publication of that announcement and will engage with the company and its designated adviser to consider and assess whether the contents and publication of the announcement comply with the listings requirements,” the exchange said.

Liberty Coal response

Liberty Coal, one of the organisations Mantengu accused of being a front company, has also responded to the miner’s accusations.

Liberty accused Mantengu CEO Michael Miller of being a “delusional fantasist who has, for what can at its kindest only be ascribed to some form of unhinged narcissism, allowed his personal failings in that position to lead him down a rabbit-hole of baseless allegations concerning Mantengu’s parlous share performance”.

“Mr Miller, on behalf of Mantengu, seemingly solely based on inferences he has chosen to draw without a shred of factual evidence, has however chosen to make far-reaching and defamatory allegations not merely of untoward but criminal conduct by various parties, including Liberty Coal,” the company said.

It said these allegations can cause severe financial and reputational harm to those Miller has targeted. “Liberty Coal, and no doubt others, will be seeking full redress in law from both him personally and Mantengu for such harm,” the company said.

“Regrettably, it will ultimately also be the shareholders in Mantengu that suffer when Mr Miller’s delusional fantasies are proven to be just that.”

“Mr Miller and/or Mantengu furthermore claim to have lodged a formal criminal complaint against what is said to be a syndicate ‘fronted’ by, among others, Liberty Coal, but has provided no further details in that regard.”

“By leaking his alleged criminal complaint to the media, he attempts to both bypass and pre-empt legal due process, seemingly without proper or any care for the consequences of his conduct.”

Liberty Coal, which owns the Optimum Colliery coal mining complex, said it neither trades in nor mines chrome, has no interest in Mantengu, its business or Miller.

The company explained that, before Miller chose to develop his “current fiction to explain the poor performance of Mantengu’s share price”, it was not even aware of Mantengu’s existence.

“Certainly, either then or now, it has had no interest in its shares, share price or business activities,” Liberty said.

The company afforded Miller and Mantengu the opportunity until close of business on Monday, 12 May 2025, to formally and publicly retract its allegations and tender an apology to Liberty Coal.

“Liberty Coal intends shortly instituting such further legal actions against Mr Miller and Mantengu for defamation, including appropriate damages, an urgent interdict to stop further defamatory comments being made and crimen injuria, as it has been advised,” it said.

SEAM response

SEAM, which Mantengu also accused of being a front company, said it noted with real concern recent statements made in the media implicating it in alleged market manipulation activities.

“SEAM unequivocally rejects these allegations. The company and its board has neither engaged in, nor has it been party to, any form of market manipulation,” it said.

“These claims are entirely unfounded and are vexatious and defamatory.”

In addition, the company further noted that Mantengu have elected to make serious allegations using public platforms, most notably the JSE’s SENS platform.

SEAM accused Mantengu of seemingly not complying with the JSE’s Listing Requirements and making its allegations in ostensible disregard for established principles of corporate governance and responsible communication.

“SEAM will demand a full and unconditional public retraction and apology from the Board of Mantengu Mining by no later than close of business on Monday, 12 May 2025,” it said.

“Should this not be forthcoming, SEAM will immediately take legal advice on how to best protect and assert its rights so as to protect its reputation and safeguard the interests of its shareholders and other stakeholders.”