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Exclusive: David Lenigas run Afriag Global under formal investigation in South Africa

By Tom Winnifrith | Sunday 28 January 2018


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


I have been shown emails which confirm that NEX Markets listed AIM refugee Afriag Global (AFRI), founded and run by David Lenigas is now under a formal investigation by South Africa's Companies and Intellectual Properties Commission (CIPC). Given the allegations about Yusuf Kajee and Paul de Robillard, the key players in Afriag earlier today, the company and those involved are now likely to come under inense scrutiny from regulators in London.

The email that I have seen shows CIPC investigating two distinct matters which relate to the relationship between Afriag Global PLC, the London listed entity run by Mr Lenigas and AfriAg (Pty) Ltd which is 40% owned by Afriag Global Plc following the 2013 payment of 188 million Afriag shares worth £1.326 million to the tobacco smuggler Paul de Robillard.

However, the accounts for Afriag Pty contain no sign of this - although the 2016 set reveal a loan to Afriag (Pty) Ltd of a comparable amount by another Robillard company, PFC Integration. Afriag has never declared any stake in PFC Integration so what is going on here? Perhaps CIPC will be able to clarify after its enquiry.

There is also a considerable disparity between the revenues and profits declared by Afriag (Pty) Ltd and those reported to Afriag shareholders back in London. For instance, in the 2016 PLC annual report on page 2 it states that Pty enjoyed revenues and net profits of R119.522 million and R6.964 million respectively. But submissions in SA for Pty for the same period show sales of 1333.733 million but net profits of just 533,416. 2016 statements show similar disparities.

No doubt there is a perfectly rational explanation for all of this. I look forward to a statement from Afriag to clarify matters and to discuss the investigation that is now underway.

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