LAB - Labat Africa Limited - Reportable Irregularities
LAB
LAB
LAB - Labat Africa Limited - Reportable Irregularities
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN:ZAE000018354
("Labat" or "the company")
REPORTABLE IRREGULARITIES
Shareholders are advised that, during the period when Aurora appointed directors
were in charge of the company, two irregularities were discovered and reported
to the company auditors, which were subsequently identified as reportable
irregularities. Following the Company`s reply, the auditors have confirmed to
IRBA that the reportable irregularities are no longer taking place and whilst
there is no certainty, the directors of the Company have taken adequate steps
for the prevention or recovery of any loss as a result thereof.
The first of these related to cheques to the value of R9 million signed by
unauthorized signatories of the company for the payment of Aurora debt. These
cheques were stopped at the bank. The company successfully defended this claim,
have consulted with attorneys and is of the opinion that there is no liability
in respect of this Aurora debt.
The second matter relates to a $2 million investment which an investor had been
led to believe was to be invested in Labat but which was "diverted" to an Aurora
account. These funds were never received by Labat and the Company`s attorneys
and directors are of the opinion that there is no obligation or liability on
behalf of Labat. The directors are informed that the investor is pursuing the
matter against the third parties.
Both of these "irregularities" occurred during the tenure of Aurora appointed
directors in Labat. These directors have been replaced, the board reconstituted
and these matters have been reported to IRBA, the JSE and other relevant
authorities for appropriate action.
The directors are accordingly of the view that there is no financial liability
which needs to be raised in the books of Labat in relation to these matters.
11 August 2011
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
Date: 11/08/2011 07:16:06 Produced by the JSE SENS Department.
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