SPAR Share Price Dips Below R50 as New Fraud Allegations Add to Governance Challenges

Quick overview

SPAR is facing renewed scrutiny after fresh fraud allegations surfaced, adding to a series of governance disputes, shareholder concerns, and legal battles that have challenged the retailer in recent years.

New Allegations Emerge

Businessman Amaan Sayed has once again raised allegations against SPAR, citing a due-diligence report prepared by BDO in September 2025. According to reports, the review identified alleged VAT irregularities, unreliable financial information, and possible stock manipulation at SPAR’s corporate-owned Bloed Street Tops store.

The report reportedly highlighted discrepancies between financial records, stock levels, and sales data. Sayed has referred the matter to several regulatory bodies, including the JSE, the South African Institute of Chartered Accountants, and the Companies and Intellectual Property Commission.

SPAR Rejects Broader Wrongdoing

SPAR has disputed suggestions of wider misconduct. While the company said it could not comment directly on the report because of confidentiality agreements, it stated that the findings related to a single store and that its own internal review found no reportable irregularities.

SPP Chart Monthly – Falling to 2008 Lows

Shareholder Governance Concerns

The latest allegations arrive amid broader governance concerns. Earlier this year, 61% of shareholders voted against SPAR’s executive remuneration policy at the company’s annual general meeting.

Criticism centered on a R9.5 million lump-sum payment made to former Chief Financial Officer Mark Godfrey following his departure at the end of 2024. Corporate governance specialists noted that the vote reflected growing shareholder willingness to challenge board decisions and executive compensation practices.

Historical Manipulation Claims

SPAR has faced similar accusations before. In 2023, a group of former retailers alleged that former CEO Brett Botten and other executives manipulated valuations and financial information linked to black economic empowerment transactions.

The complainants claimed that underperforming stores were sold at inflated values and that financial arrangements concealed losses. They argued that the practices resulted in substantial financial damage. However, these allegations have not been proven in court.

Legal Disputes Continue

Separately, the Giannacopoulos Group filed fraud and perjury complaints against several SPAR executives following a long-running dispute over control of dozens of SPAR and Tops stores.

The group alleged that misleading information regarding development loans and indebtedness was presented during court proceedings. SPAR has denied those claims and continues to defend separate litigation in which the Giannacopoulos Group is seeking damages of R2.1 billion.

Outlook

While none of the latest allegations have been proven in court, the renewed claims add to ongoing governance and legal challenges facing SPAR. As regulatory reviews and court proceedings continue, investors are likely to remain focused on the company’s transparency, governance standards, and ability to restore confidence.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Telkom Hikes Dividend Following Surge in Annual Earnings, JSE: TKG Share Price Heads for R70

6 h ago

Save

Sasol Share Price JSE:SOL Attempts to Resume Uptrend in June as Oil Bounce Offers Relief

1 day ago

Save

Nedbank Faces Earnings Slump as Institutional Investors Hold Steady

2 days ago

Save