Gijima Heads for Biggest Fall in Month as Deal Probed: Johannesburg Mover
Gijima Group Ltd. (GIJ), a South African computer-services company, fell the most in a month in Johannesburg trading after South Africa’s anti-corruption agency started a probe into a government contract.
The stock declined as much as 6.3 percent to 60 cents, the biggest drop on a closing-price basis since Dec. 22, as of 10:26 a.m. in Johannesburg. Gijima will cooperate with a probe by the Public Protector into a 2.3 billion-rand ($290 million) contract awarded to it by the Department of Home Affairs, the company said in a statement.
Gijima executives learned from Johannesburg’s City Press newspaper that the Public Protector is investigating the June 2008 contract, Chief Executive Officer Jonas Bogoshi said in the statement. Centurion-based Gijima won an order to upgrade the department’s information technology systems in 2007. The department later canceled the contract, saying it was invalid, and accused the company of corruption.
“This matter has already been settled between Gijima and Department of Home Affairs in 2011, and all issues relating to the contract have already been aired,” the company said.
Gijima reached a settlement agreement with the department in December 2010.
To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at email@example.com