Dodgy dealings 'embarrass` Blue Label

By Kimberly Guest for Blue Label Telecoms
Johannesburg, 02 Apr 2008

Recently-listed Blue Label Telecoms has revealed that another director has engaged in share trading without the requisite clearance required by the JSE.

This is the eighth such announcement to be issued by the company this year. Three Blue Label Telecoms directors have so far been identified and the JSE is investigating the matter.

Yesterday`s announcement disclosed that Graeme Prosser - a director of Blue Label subsidiary, The Prepaid Company - bought 227 000 shares for little over R2 million in November last year. Prosser did not get clearance for the transaction from the company`s board and a timeous announcement to shareholders was not made.

Blue Label Telecoms joint-CEO Mark Levy says the company and top management team have been "highly embarrassed" by the infringements.

"We are a new company on the bourse and we felt that we had adequately communicated the processes involved in being a listed company. We are obviously very embarrassed and are working closely with the JSE to get the matter resolved," he explains.

Despite media reports on the matter, Levy says he has no reason to believe there was any malicious intent on behalf of the directors involved.

"I do not want to pre-empt the outcome of the JSE`s investigation, but our investigations have pointed to a lack of appreciation of the JSE`s listing requirements rather than any deliberate acts of misguidance or insider trading."

Levy says internal disciplinary proceedings have been instituted.