
The executive that are facing civil claims include Zimbabwe
based executives John Chibwe (Hippo Valley Estates Finance Director), Mr Sydney
Mtsambiwa (former managing director of THL’s Zimbabwean operations), Mr Raphael
Pfunye (Zimbabwe Sugar Sales Finance Executive) and Mr Steve Frampton (former
Zimbabwe Sugar Sales General Manager).
This comes after the JSE-listed company received the
results of a six-month forensic probe into its finances carried out by PwC
which found that profits and assets had been overstated in earnings reports.
“Certain senior executives initiated or participated in
undesirable accounting practices that resulted, among others, in revenue being
recognised in earlier reporting periods than it should have been, and in expenses
being inappropriately capitalised to assets,” it said. “This resulted in
profits in the respective years being overstated, and in the overstatement of
certain assets in THL’s financial statements.”
The PwC Investigation identified that certain agreements in
Zimbabwe which, in substance, were financing arrangements, were structured as
sales of significant sugar stocks, and accounted for as sales every six months,
at financial half year and year-end. Furthermore, even though at least part of
the sugar stocks comprised raw sugar, these ‘sales’ were accounted for as sales
of refined sugar, and priced accordingly. As a result, revenue pertaining to
sugar sales was overstated.
Zimbabwean executives were mentioned as some of the
individuals “involved in some or all of the above practices, to a greater or
lesser extent.” Herald
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