Delta Property Fund’s board said on Tuesday that the JSE had agreed to delist the company’s shares. Picture: Nhlanhla Phillips/African News Agency/ANA
Delta Property Fund’s board said on Tuesday that the JSE had agreed to delist the company’s shares. Picture: Nhlanhla Phillips/African News Agency/ANA

Delta shares suspended after audit probe into procurement scandal

By Edward West Time of article published Dec 17, 2020

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CAPE TOWN - DELTA Property Fund’s board said on Tuesday that the JSE had agreed to delist the company’s shares as the financial statements for the year ended February 2020 had been withdrawn in the wake of a forensic probe into the firm.

The share traded briefly on Tuesday morning ahead of the suspension on the same day, with the price rising 9.38 percent to 35 cents. Earlier this month, the board said a forensic audit by Mazars into alleged procurement irregularities and the misappropriation of funds by senior executives by Mazars had been completed. The board had subsequently also engaged with its auditor, BDO South Africa, about the investigation, which led to the withdrawal by the auditor of its audit opinion in the financial statement for the year to end-February 2020.

“As a direct result of the withdrawal and continuation of the investigation into the impact of the forensic investigation on the company and its prior period financial information, as well as the audit procedures being undertaken by the auditor, the board engaged with the JSE to consider a suspension of the listing of the company’s shares.” The JSE suspended the shares on Tuesday on the grounds that the last results could not be relied on, and Delta’s board said they supported it. “The board views the suspension as a temporary measure.” The board envisaged that the 2020 financial statements and interim results would be released by no later than February 28, 2021, after which it would apply to have the suspension lifted.

Three executives who recently resigned from the firm, former chief executive Sandile Namovete, former chief financial officer Shaneel Maharaj and former independent director Otis Tshabalala last week denied they were in involved in any of the irregularities exposed by the investigation.

BUSINESS REPORT

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