Two sets of financial results pending
International law firm engaged to conduct forensic investigation
Choppies contravened accounting practices
Troubled retail giant, Choppies Enterprises Limited disclosed that it will not be able to release the company’s half year financial results for the period ending December 2018 on time.
According to a cautionary announcement availed on the BSE website, the Board is not able at this stage to determine when the Company will be in a position to publish the 2018 full year financial results for the period ending June 2018. The results were supposed to have been released by mid-last year.
The Board announced that it will provide further updates to shareholders as and when the Audit Queries and Legal Investigation are completed and when information is availed by the team as to when the Forensic Investigation is expected to complete.
“This will lead to an assessment by the Board as to a date by which the 2018 Financial Results are envisaged to be published, which will then be communicated to shareholders,” according to the Choppies board chaired by statesman Festus Mogae.
Choppies further advised shareholders that, as the 2018 Financial Results have not been published, this has had a timing impact on the publication of the half-year results of the Group to 31 December 2018. “The Board is engaging with the BSEL to determine if both sets of financial results can be published simultaneously, at a date to be determined based on conclusion of all the Audit Completion Matters,” Choppies said, which means that two sets of financial results for the June 2018 full year and the December 2018 interim period will both be delayed.
According to auditors PricewaterhouseCoopers (PwC) Choppies has been found to have engaged in secretive financial dealings where the company transacted with related parties without disclosure. Choppies’ financial reporting methods have also been found to have be non-complaint with the International Financial reporting Standards (IFRS).