Ernest Mabuza
29 September 2006
Johannesburg — MINING magnate Roger Kebble struck a plea bargain agreement with the state yesterday to bring to an end a protracted legal battle involving insider trading and contraventions of the Stock Exchange Control Act.
As part of the deal, Kebble will have to pay a fine of R1,5m, in three instalments, with the first due no later than October 30 and the last by January 31.
Johannesburg High Court Judge Nigel Willis also sentenced Kebble to four years' imprisonment, suspended for four years. The judge said Kebble had admitted to allegations and he was satisfied that Kebble was guilty.
Kebble, together with his son Brett and Hennie Buitendag, was indicted in December 2002 on charges of fraud, conspiracy, incitement and insider trading.
The allegations arose from a scheme implemented during 1999 and early 2000, when Kebble masterminded secret trades in Randfontein and Western Areas.
All the counts concerned a series of share dealings, the purpose of which was to restructure the group of companies known as the JCI/Randgold Group.
Kebble still faces a separate court case which implicates him in tax fraud involving more than R7m. The charges relate to a company known as Skilled Labour Brokers and the state claims Kebble failed to declare income the entity received during the 1999, 2000 and 2001 tax years.
The state also claims Kebble received income from gains on share options exercised from Durban Roodepoort Deep during the 1999 and 2002 tax periods and failed to declare that income.
Kebble is scheduled to stand trial in the Johannesburg Magistrate's Court in March next year. However, Kebble submitted forensic reports last month to the South African Revenue Service in a bid to have the tax fraud charges dropped before his trial starts.
According to Kebble, the forensic reports show that his tax affairs are in order.
In the plea bargain agreement, the state withdrew other charges against Kebble because the alleged main perpetrator was his son, Brett, who was killed last year.
Willis said the indictment dealt with complex technical issues and that the JSE and the Financial Services Board had been consulted.
In sparing him a jail term, the judge said he considered Kebble's age, that he had no previous convictions, that he had shown remorse, and because of the personal circumstances surrounding the death of his son. He said although the plea-bargaining system was not perfect, it was appropriate in this case.
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