TWK Investments said that a PricewaterhouseCoopers Inc (PwC) probe into alleged accounting irregularities had dismissed 15 out of 16 allegations brought against the diversified agriculture and forestry company as a shareholder.
The probe examined the financials for the period ending August 2021.
However, PwC said apparent minor casting errors that occurred during the final inclusion of the full-year 2021 statements into the published integrated report, which would have no impact on the statement of financial position or statement of comprehensive income as presented.
TWK Investments listed on the Cape Town Stock Exchange (CTSE) on November 30 last year.
In February, BizNews reported that:“ A TWK shareholder has demanded an independent forensic audit of the CTSE-listed former farming co-op because he believes one of Markus Jooste’s Steinhoff intimates, Piet Ferreira, is up to the tricks similar to those exposed in SA’s biggest ever fraud.”
Frederick Kluckow, the commercial director of Shift Capital, alleged that Ferreira, a director and chair of the company’s audit committee, had carried out accounting irregularities at the firm.
“His suspicions were aroused after a member of the audit sub-committee of the TWK board issued four falsified FNB bank “guarantees” for an R11m company debt. FNB encouraged the shareholder to lay a charge of fraud against the TWK director, which has been done,“ BizNews reported.
JEW Fivaz, the chief financial officer of TWK Investments, refuted the allegations in a clarification statement on CTSE on February 18, saying: “The Director of Shift Capital has further made several allegations in respect of material misstatements in the financial statements of TWK Investments. TWK Investments denounces these allegations as factually incorrect. The allegations are based on misinterpretation of the financial statements and/or IFRS. TWK will subject the allegations to an independent review to transparently dismiss any concerns.”
MJ Potgieter, the company secretary of TWK Investments, in a statement yesterday said the allegations were summarised into 16 different allegations, 15 of which could not be sustained based on the results of the PwC investigation.
However, in relation to the allegation that no 2020 comparative results were presented for the new “Renewable Energy” segment, it had been confirmed that in terms of IFRS 8, the comparatives for the financial year 2020 should have been included to separately report this segment once the decision was made in the full year 2021 statements that this would be a separate reporting segment.
Potgieter said the board had assessed the outcome of the investigation and “is comfortable that the minor findings would not materially influence a user’s decisions taken” based on the full year 2021 statements.
“The board confirms that none of the findings have an impact on the statement of financial position or statement of comprehensive income as presented. The board thus considers the matter as closed and confirms the company’s commitment to accurate and transparent reporting.”
TWK Investments flagged that in respect of the allegations against a non-executive director of the company, in relation to a guarantee issued by the director, the matter was still subject to a separate investigation by PwC.
The company statement comes hot on the heels of the firm on Tuesday reporting that TWK Investments had posted a hike in profit after tax by 175.5 percent to R246.65million for the six months ended February.
Managing director André Myburgh said the results were on the back of the diversity of TWK’s income stream and as general trading conditions improved, which resulted in an increase in sales and net profit in the timber, retail and mechanisation segments.
BUSINESS REPORT