FSCA orders Tongaat to pay R20m administrative penalty
Sugar producer Tongaat Hulett has been ordered by the Financial Sector Conduct Authority (FSCA) to pay a R20-million administrative penalty.
The FSCA has concluded its investigation and determined that Tongaat had breached the provisions of Section 81 of the Financial Markets Act. The breach relates to the misrepresentation by Tongaat of its financial performance in prior years, which resulted in the restatement of the results for its 2017 and 2018 financial years.
The FSCA noted that Tongaat’s current management had given their full cooperation during the investigation and enforcement process, accepted that the company had contravened the provisions of the Act and undertook to put measures in place to ensure the company mitigates the risk of similar contraventions occurring in the future.
The FSCA initially imposed a proposed administrative penalty of R118.34-million, but Tongaat applied for the remission of the penalty.
After considering the application for remission, the FSCA agreed to reduce a portion of the penalty, ordering the sugar producer to pay R20-million.
Last month, the JSE imposed a R7.5-million fine on Tongaat for breaching its listing requirements by publishing incorrect and misleading financial statements.
Advisory firm PwC in November 2019 released its findings into an investigation of financial activities by certain former executives. The firm found that certain senior executives had initiated or participated in “undesirable accounting practices”.
This had resulted in revenue being recognised in earlier reporting periods than it should have been, and in expenses being inappropriately capitalised to assets. This, in turn, resulted in profits in the respective years being overstated.
Tongaat in November said it would pursue claims against those executives identified in the PwC investigation.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation