Pinnacle Holdings stock continued to slide this morning on the back of yesterday’s news that an executive director stands accused of bribery.

Takalani Tshivhase is alleged to have offered a lieutenant-general of the South African Police Service R5-million in January last year to secure a technology contract.

On Tuesday, the company’s share price fell by about 25% to close at R15.00. About 6,28-million shares were traded in 2 937 deals.

Today, the fall continued, with Pinnacle Holdings shares trading at R11,20 at the time of going to press, a further 25% drop. So far today, 4,43-million Pinnacle Holdings shares have traded in 1 717 deals.

Pinnacle Holdings has issued the following statement: “The company hereby informs its shareholders that Mr Takalani Tshivhase, an executive director of Pinnacle, has been charged with alleged attempted bribery of a Lieutenant General of the South African Police Service, with R5 million. This alleged incident occurred some 14 months ago, around 16 January 2013.

“Mr Tshivhase denies all allegations of attempted bribery, and will defend the charges.

“From the evidence thus far available to the company, the company is satisfied that there is no reason to doubt the veracity of Mr Tshivhase’s denial of the allegations.

“The company will review the matter as further information becomes available and will inform shareholders accordingly.”

On 19 March, Tshivhase sold off 200 000 shares worth about R4-million, a dealing that was made public on Monday (24 March). Other directors have also sold share during the previous month, after Tshivhase was charged on 5 March.