JSE-listed technology group Altron said on Friday that it has suspended three executives at its Altron Nexus subsidiary following an investigation that revealed “potential internal irregularities”.
It did not name those suspended.
The precautionary suspensions come after Altron received information from a whistle-blower in June 2018. This led to Altron appointing independent investigators to look into alleged procurement irregularities “among a few senior executives within Altron Nexus”, it said.
“The investigation found no evidence of irregularities but made recommendations on procurement process improvements and reporting obligations, which were implemented,” the company said.
“In June this year, Altron received a second tip-off from a whistle-blower on similar allegations. The company immediately initiated another investigation conducted by forensic services company Naledi Advisory Services.
“The preliminary findings have revealed potential deviation from procurement processes, involving an estimated R23-million, and early profit recognition of approximately R20-million in the 2018 financial year.”
Altron CEO Mteto Nyati said the company views the allegations in “a serious light”.
“This investigation is in line with our zero tolerance to unethical conduct, despite the amounts not being material to Altron’s financial position,” Nyati said in a statement.
“Over the past three years, we have been steadfast in building a culture of good governance driven by our values of openness, honesty and integrity. Our employees are now able to come forward with any claims of misconduct without any fear of retaliation.”
He said Altron is following due process and the three executives may go through a disciplinary hearing, overseen by an independent chairman.
“While the investigation is ongoing, we would like to assure our customers, partners and employees that plans have been put in place to ensure business continuity at Altron Nexus.” — (c) 2019 NewsCentral Media