Picture: 123RF/ALEX LMX
Picture: 123RF/ALEX LMX

Niche financial services group Ecsponent says it will begin legal action following an external forensic probe into the merits of a R100m investment it made into a subsidiary of MyBucks SA.

The group says the merits of the investment may have been misrepresented and it is pursuing “certain parties” which it believes are possibly liable for financial losses that followed actions by the company.

The group had internally probed an investment it made into redeemable preference shares of VSS Financial Services in 2018, a wholly owned subsidiary of fintech group MyBucks.

“Stakeholders are now advised that the board, after completion of the internal investigation, has decided to institute an independent forensic investigation into possible misrepresentation on the merits and purpose of the investment at the time of the initial investment proposal, which may have ultimately resulted in financial loss to the company,” the group said.

Earlier in September, Ecsponent said it had instituted legal action after a forensic investigation into $7.5m (R126m) in funds received by a Mauritius-based subsidiary. The group said at the time the use and distribution of the funds had been probed.

gernetzkyk@businesslive.co.za

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