Tongaat has been fined for its 2011 to 2018 financial information not complying with IFRS standards.
The Johannesburg Stock Exchange (JSE) has issued a public censure of Tongaat Hulett and a maximum fine of R7.5 million for non-compliance with the exchange’s listing requirements.
According to the JSE, the company’s previously published financial information for the periods 2011 to 2018 did not comply with IFRS and was “incorrect, false and misleading” in material aspects. This incorrect information was disseminated to shareholders, the JSE and the investing public.
On accepting the fine and censure, Tongaat said it had cooperated and would continue to cooperate with the JSE and other regulatory bodies to deal with this matter and, in particular, to support the JSE to comply with its duties under the Financial Markets Act.
Tongaat CEO Gavin Hudson hired PwC to conduct a forensic investigation in March 2019, which found that some executive had played a role in overstating assets and profits by using “undesirable accounting practices”.
The group was subsequently forced to restate its financials for the year ended March 2018.
