April 7, 2003
By Roy Cokayne
Pretoria - Bridgestone Firestone Maxiprest, the listed tyre company, has instructed auditors KPMG to conduct a forensic audit into certain transactions with Grant Ramsay, the businessman arrested last week on tax evasion charges involving more than R177 million.
Mike Davison, Bridgestone Firestone Maxiprest's financial director, said at the weekend that the forensic audit was a "precautionary measure" and the company had not itself uncovered any financial irregularities.
Davison said the forensic audit was necessary because Ramsay was the company's auditor, adviser and a director from 1999 until the end of 2001.
"I think we have to be cautious.
"Our independent non-executive directors in particular have insisted that a full investigation be conducted to ensure that everything is smoothed out and we don't have any backlash going forward," Davison said.
Ramsay, the managing director of Galahad Business Solutions, was released on bail of R1 million after turning state witness in a plea bargain agreement following his arrest.
Ramsay's arrest followed investigations conducted after the arrest of Shireen Ismail, a senior employee at Galahad Business Solutions, the former auditors of listed financial services company Tigon; Sue Bennet, a director of Synergy Management and Finance, a Tigon associated company; Anthony Murray Hodgekinson, the financial director of Shawcell Telecommunications; Gary Porritt, the chief executive of Tigon, Shawcell and Synergy Management and Finance; and Jakobus Viljoen of the SA Revenue Service (Sars)
.
Police indicated that the arrest of Ramsay and the recent arrest of directors of Tigon were just the tip of the iceberg.
They said investigations continued into more than 300 firms believed to have defrauded Sars of about R3 billion through Galahad Business Solutions.
The directors of the companies involved in the tax evasion and fraud have been urged to make arrangements with Sars or face arrest.
Bridgestone Firestone Maxiprest advised shareholders to exercise caution in trading their shares in the company pending the outcome of the investigation and until the publication of a further announcement.
The share price closed 7c lower at R1.30 on Friday.
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