Executives now preparing to face disciplinary hearings at Altron
Executives of subsidiary Altron Nexus were placed on precautionary suspension following an investigation that revealed potential internal irregularities
Altron CEO Mteto Nyati said on Tuesday the disciplinary hearings for three senior executives of subsidiary Altron Nexus, who were placed on precautionary suspension in September following an investigation that revealed potential internal irregularities, will begin in about three weeks.
According to Altron, preliminary findings had revealed potential deviation from procurement processes, involving an estimated R23m, and early profit recognition of about R20m in the 2018 financial year.
“The progress is slow, not because we don't want to move fast, but because we would like to give each and every one of those executives an opportunity to prepare,” Nyati said.
“We have made the decision now to go with the disciplinary hearing and we have formally charged them. Now that they have got the charges, it’s very important that they get the time to prepare to respond to those charges.”
“Some of them have asked for two or three weeks of preparation time, so that’s what’s going to happen. Then maybe in three weeks time, we’ll start with the disciplinary hearings.”
Nyati said no criminal wrong doing has been found so far. The company would continue its investigation until they get to the bottom of what happened.
Altron said previously that the amounts in question are not material for an operation with revenues in excess of R1bn.
The investigation was prompted by information the group received from whistle-blowers in June 2018 and again a year later over alleged procurement irregularities. Nyati said the two cases were similar but not identical.