Former auditor-general Shauket Fakie has so far cleared it of various allegations of share-price manipulation, the Resilient Real Estate Investment Trust (Reit) told the market late on Tuesday afternoon.
Fakie had presented his findings "on the review-to-date" to its board, Resilient said, and that Fakie had found no evidence of wrongdoing by Resilient executives, nor evidence of market manipulation or insider trading.
Resilient only summarised what it described as "Fakie's key findings". It did not release his full report or any documents beyond its statement.
Various organisations, including research firms 36ONE and Arqaam Capital, have pointed to what they said were unusual transactions, and possible manipulation to hold up share prices for Resilient and associated companies.
Billions were wiped off the valuations of the implicated companies (leading to a shakeup in the JSE's Top40 list), and Resilient was accused of being a ponzi scheme.
I wonder if one can sue the auditors and the JSE for blatant disregard of the Resilient/Fortress ponzi scheme which they tolerated for years. Billions lost in savings. I had to call them to alert them! Ridiculous.— Magda Wierzycka (@Magda_Wierzycka) March 8, 2018
It seemed, Resilient said, that what had been identified as suspicious share trades in research reports may have been a misunderstanding.
"The share activity figures mentioned in the reports as share trading activities are not correct and do not reflect the factual share movements," it said Fakie had found. "As a general observation, information that can be derived from share registers is limited and movements in share registers do not necessarily correlate to share trades."
Resilient also said Fakie had found no evidence of a link between its executives and Hendrik Oberholzer – a formerly unknown investor who single-handedly amassed R1 billion worth of shares in Resilient and a related company.
Oberholzer told Fakie that the four companies that own those shares are funded by Roque Hafner, Resilient said.
In 2011 investigative magazine Noseweek called Hafner "a ruthless fraudster" who decades ago was responsible for "mostly elderly investors" losing millions of rands through property company Supreme Holdings.
Resilient said Fakie interviewed both Oberholzer and Hafner, and both provided confirmatory affidavits.
"Mr Fakie also sample tested their share activity and flow of funds," the company said.
The Financial Sector Conduct Authority (FSCA) is investigating possible market manipulation and insider trading at Resilient. Those investigations are ongoing.
Resilient owns a number of well-known malls including, Jubilee, Irene Mall, The Galleria, I'langa Mall, Mall of the North, and Soshanguve Crossing.