Gold Fields may be safe from US action over BEE deal - Fin24
Cape Town - The US Securities Exchange Commission will not recommend that enforcement action be taken against Gold Fields [JSE:GFI] over a 2010 black economic empowerment (BEE) deal.
The BEE deal included the granting of a mining licence for its South Deep mine and giving a 9% stake in South Deep to a group of black investors to meet government BEE targets.
In a note to shareholders on Monday, Gold Fields said it had been “informed by the Foreign Corrupt Practices Act Unit of the US Securities Exchange Commission that it has concluded its investigation into the BEE deal related to South Deep and, based on the information available to them, will not recommend to the SEC that enforcement action be taken against Gold Fields”.
Gold Fields is subject to scrutiny from US regulators because it is also listed in the United States.
Gold Fields said the notice has been provided under the guidelines set out in the final paragraph of the Securities Act Release No 5310, which states in part that the notice "must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff's investigation".
Reuters reported in 2013 that the company said an independent investigation into the deal determined that the transaction did not meet its own standards.
Chief executive Nick Holland as a consequence and due to concerns over the deal offered to waive his 2013 bonus.
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