Mr Price puts a tag on non-compliance case


Mr Price puts a tag on non-compliance case

Published Date: 2019-09-20 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mr Price puts a tag on non-compliance case

The retailer launched an internal investigation following allegations of non-compliance with its code of conduct by two managers and a supplier.

Mr Price says an internal investigation into allegations of non-compliance between two senior managers and one of its suppliers has limited the potential financial exposure to R20 million.

Last week, the retail group alerted the market to the probe and placed the employees on precautionary suspension while it investigated. That was after the possible impropriety was brought to the attention of its board of directors. It said the claims didn't relate to any financial reporting irregularities and didn't involve any executive or non-executive directors of the retailer.

It said the investigation had now proceeded to a point where the level of materiality had been determined. It said should the potential exposure of R10 million to R20 million materialise, it would seek to enforce its contractual rights against the supplier. It didn't name the supplier or the employees involved in the alleged non-compliance.

Its shares closed 0.8% higher at R159.05.

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