Iqbal Survé-linked IT group AYO Technology Solutions has been fined R1.5m by the JSE for a series of disclosure failures related to how it engaged with shareholders over related-party transactions, says a Fin24 report.

The Financial Services Tribunal dismissed AYO’s application for the suspension of the JSE’s decisions, making them enforceable, a JSE statement said.

AYO listed on the JSE on 21 December 2017. A day after listing, it entered into the first of three performance management agreements with an asset manager, 3 Laws, providing for the management of funds invested for and on behalf of the company.

When it entered into the agreements, the majority shareholder in 3 Laws was Sekunjalo Investment Holdings, which was founded and is chaired by Survé. Sekunjalo held 85% of 3 Laws, as well as 61% of African Equity Empowerment Investments, which in turn held 49% of AYO.

Therefore, 3 Laws was a related party to AYO.

After probing transactions between 2017 and 2019, the JSE concluded that AYO had failed to comply with its listing requirements, in terms of both informing the market about sizeable related-party transactions, and failing to properly inform shareholders about the nature of the agreements.

In addition, notes Fin24, ‘the JSE identified discrepancies in certain disclosures, information and dates contained in AYO’s group annual financial statements for the year ended 31 August 2019 and in AYO’s correspondence to the JSE.’

The report notes the R1.5m fine is not the first time the JSE has taken action against AYO. In August 2020, the bourse censured AYO and fined it R6.5m for the publication of a number of material errors in its 2018 interim results, while in February 2022, it disqualified two former board members from acting as directors of listed companies for five years. 

Mbuso Khoza and Telang Ntsasa were disqualified for failing to fulfil their responsibilities as directors and audit committee members of AYO with ‘the necessary due care and skill’.

Full report on the Fin24 site