CHRIS GILMOUR AND JOHN FRASER: Corporate control thwarts company scrutiny

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Sinister, deliberate, underhand moves are afoot to make it harder for analysts and journalists to do a proper job of identifying corporate crooks

Remember Steinhoff? Corporate fraud and auditor snoring on such a scale that this shamefully SA scandal has promoted books — and even a television series on Showmax, the same streaming service where you can catchCorporate crooks will always try to get away with whatever they can, and Steinhoff’s elusive manner and evasive tactics when it came to the analyst community enabled it to get away with too much for too long.

They are not quite a dying breed, but there are sinister, deliberate, underhand moves afoot to make it harder for analysts and journalists to do a proper job. It’s impossible to gatecrash these events, even when word gets out that they are happening, due to the gatekeeping of in-house investor relations teams.

Afrimat was one of the first companies to get back in the saddle and restart offering real, live presentations. Live presentations offer an opportunity for analysts and financial journalists to meet executives and discuss aspects of the business before, during and after the slide show. Until then the presentation had gone effortlessly, but when Hall stuck the boot in they both crossed their arms in an almost comically defensive manner. Actions shouted far louder than words.

This is partly a reflection of a dwindling institutional investor base, coupled with a far smaller range of shares listed on the JSE.

 

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