GMB
GMB
Glenrand MIB Limited - Clarification regarding "bulking and secret profits"
GLENRAND MIB LIMITED
(a Licensed Financial Services Provider)
(Incorporated in the Republic of South Africa)
(Registration number 1997/008001/06)
Share code: GMB & ISIN: ZAE000078010
("Glenrand" or "the Company")
Clarification regarding "bulking and secret profits"
Shareholders are referred to the trading statement that appeared on SENS on 31
May 2006 (the "trading statement"). It was stated in the trading statement that
Glenrand has made a provision for R18 million in relation to "bulking and secret
profits" in respect of its Benefit Services unit. This provision includes
allowance for:
- potential refunds of full revenue earned on bulking (despite a Glenrand
policy to agree and disclose this to clients in advance of commencing the
practice);
- revenue earned on pool risk benefit policy offerings; and
- potential exposure on historically acquired businesses.
Shareholders are also referred to speculation in the press today stating that
the Company would spend less than planned to compensate pension-fund customers.
The exact amount that will need to be repaid to its clients can only be
determined following an investigation by PriceWaterhouseCoopers Inc ("PwC") into
all the above practices and subsequent discussion of the report and the approach
of the Financial Services Board ("FSB").
The board of Glenrand believes it appropriate to maintain the provision of R18
million until all the processes mentioned above have been concluded.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in the company"s securities until a further announcement is made.
Randburg
22 June 2006
Investment Bank and Sponsor
Nedbank Capital
Date: 22/06/2006 03:39:22 PM Produced by the JSE SENS Department
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