Unexpected developments delay AEEI’s results


Unexpected developments delay AEEI’s results

Published Date: 2019-04-15 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Unexpected developments delay AEEI’s results

The investment group says it still hopes to release its interim results before the end of May deadline.

African Equity Empowerment Investments has delayed the release of its interim results due to unexpected developments within the group. It had planned to release them by the middle of next week at the latest.

In a statement on Friday, the investment group gave no further details. However, the interim results of AYO Technology Solutions, in which it owns a 49.4% stake, are being audited, which could have implications for AEEI's own financial statements.

Last Wednesday, the JSE said it had instructed AYO to engage its external auditors for an audit opinion on its 2018 and 2019 unaudited interim results. While auditors are not required to provide assurance on interim financial results, the JSE said evidence given by two former AYO executives before the PIC Commission of Inquiry had raised serious concerns. The former executives testified that AYO had given instructions for the group's results for the six months to end-February 2018 to be amended.

AYO said it was complying with the JSE's requests and had instructed external auditors BDO to go ahead with the audit.

Meanwhile, Business Day reported last month that trading in the shares of both groups was being investigated by the Financial Sector Conduct Authority for possible market manipulation. A statement on the FSCA's website said all trades in AEEI's shares last year were being probed, while activity in AYO's shares last May and June was under investigation.

AEEI's shares didn't trade on Friday, closing unchanged at R2.88.

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