COMPANY COMMENT
Suspension of Tongaat Hulett the right call
It is unclear how far back investigators will have to dig before they reach information they can rely on
There’s little doubt the JSE was going to be damned if it did, damned if it didn’t, but on balance, the unprecedented decision to suspend Tongaat Hulett was probably the right one.
With each passing week, the number of people involved in getting to the bottom of what has transpired at this company grows.It is not just the key decision-makers in the company, it's their advisers, their bankers and the other professionals churning through the accounting debris that was used to create the financial statements that can no longer be relied upon. It is unclear how far back the investigators will have to dig before they reach information they can rely on.In its announcement, the Tongaat board referred to a number of reasons for requesting the suspension including to allow time to complete the forensic investigation and to allow the board time “to complete the strategic review, implement remedial actions and accelerate the turnaround”.This suggests there is no grim, African Bank-type p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.