Altron places subsidiary executives on pre-cautionary suspension

6th September 2019

By: Creamer Media Reporter

     

Font size: - +

JSE-listed Allied Electronics (Altron) on Friday announced the pre-cautionary suspension of three Altron Nexus senior executives.

This follows an investigation at the subsidiary that revealed potential internal irregularities.

After receiving information from whistle-blowers – one in June last year and again in June 2019 – Altron appointed independent investigators to look into alleged procurement irregularities among a few senior executives within Altron Nexus.

The first investigation undertaken last year found no evidence of irregularities, but made recommendations on procurement process improvements and reporting obligations, which were implemented.

The preliminary findings from the more recent second investigation, undertaken by forensic services company Naledi Advisory Services, revealed potential deviation from procurement processes involving an estimated R23-million and early profit recognition of about R20-million in the 2018 financial year.

“The company views these allegations in a serious light. Accordingly, this investigation is in line with the Altron group’s zero-tolerance to unethical conduct, despite the amounts not being material to Altron’s financial position,” Altron said in a voluntary statement to shareholders.

Altron is following due process and the three executives may go through a disciplinary hearing, overseen by an independent chairperson.

“While the investigation is ongoing, the company would like to assure its customers, partners and employees that plans have been put in place to ensure business continuity at Altron Nexus,” it concluded.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION