Shares in JSE-listed construction group Stefanutti Stocks tanked more than 40% on Wednesday after a Scorpio exposé revealed how it and the local subsidiary of multinational Tenova TAKRAF made big payments to an apparent slush fund used to enrich top Eskom officials.
Like most of South Africa's construction sector, JSE-listed Stefanutti Stocks has been under pressure in the face of a sour economy and low levels of investment and demand.
Its fortunes have now taken a decided turn for the worse with its share price sliding more than 40% on Wednesday 27 November, making it the bourse's biggest decliner on the day, in the wake of revelations by Scorpio, a sister publication of the Business Maverick. Stefanutti Stocks are now down about 97% over the past 12 months.
While the company's share price has been in a steady state of decline, it seems improbable that the Scorpio story and Stefanutti's share performance on Wednesday are unrelated, given investor concerns about corporate governance and the wider public backlash in South Africa about the unfolding and sordid saga known as State Capture.
The Scorpio story outlined how Stefanuti Stocks and three other companies collectively paid R75-million to a little-known company, Babinatlou Business...