Afristrat Investment, an African diversified financial services group, on Friday said the High Court of South Africa had granted the liquidators of VSS Financial Services, a subsidiary of Frankfurt-listed fintech firm MyBucks, permission to convene a forensic investigation.
Afristrat is MyBucks SA’s controlling shareholder.
MyBucks wants to probe VSS for alleged financial mismanagement and accounting irregularities.
Shareholders are referred to the annual financial statements of the company for the year ended March 31. It said pursuant to VSS being placed in provisional liquidation, the liquidator was in the process of setting up an inquiry, which was expected to be overseen by a retired judge. The board of directors of Afristrat also committed to appropriately implement any actions, recommendations and possible claims from the inquiry, it said.
Last year, MyBucks advised shareholders it had received a letter and a copy of a forensic accounting report, by Kahamelo Forensic Services, from shareholder, Ecsponent, regarding issues concerning VSS, probing a R100 million investment in MyBucks by Ecsponent.
MyBucks said at the time: “MyBucks SA believes that certain former directors and executives, as well as certain service providers, should answer for the clear lack of corporate governance, as well as financial mismanagement, accounting irregularities and failure to act in the best interests of the company and its stakeholders.”
On Friday Afristrat said: “The board hereby advises shareholders that the High Court of South Africa has granted the liquidators of VSS permission to convene this inquiry. Once the inquiry is concluded and if permission has been obtained from the commissioner, shareholders will be advised of the outcome.”
BUSINESS REPORT ONLINE