JOHANNESBURG – Retailer Mr Price has suspended two members of senior management and a single supplier on allegations of non-compliance with the code of conduct, but clarified that the move did not relate to “any financial reporting irregularities”.
The company issued a JSE SENS statement on Thursday, saying the move was done to address recent market speculation, but failed to name the relevant parties.
Speculation has been doing the investor rounds around the reasons for the suspension, which led the retailer to issue a statement to clarify the move.
South African companies, such as Steinhoff International and Tongaat Hulett have been under the spotlight lately due to accounting irregularities that has hit their share prices and reputation, spooking the maket.
“In accordance with the company’s standard disciplinary processes, these employees have been placed on precautionary suspension while an internal investigation is underway to ensure this matter is fairly and expediently resolved,” reads the statement.
The company was careful to add that the allegations did not relate to any financial reporting irregularities, nor did they involve any executive or non-executive directors.
Nigel Payne, Mr Price's chairperson, said: “The Group takes compliance with its Code of Conduct very seriously and considers this integral to its values.”