The holding company of East London-based flooring manufacturer, Floorworx, yesterday issued a cautionary notice on the JSE about fraud in the company.The stock exchange news service (Sens) notice by the listed company, Accentuate, comes after reports that Floorworx was seeking civil and criminal action against its East London financial director, Henry Louis Schreuder.
The company alleges Schreuder defrauded the company out of about R70-million over 10 years, and it obtained an interim high court order to freeze his and his family’s bank accounts.
According to the Sens announcement yesterday‚ an internal audit at Accentuate uncovered “certain suspicious activities” at Floorworx Africa.
The company said non-compliance with approved policies and procedures suggested fraud had been committed.
It confirmed that a criminal case had been opened and urgent interdicts had been taken out against the alleged perpetrator and related parties to protect Accentuate’s interests.
The Daily Dispatch last week reported on fraud allegations amounting to R70-million involving Schreuder.
He allegedly spent the money on his wife Karin, on buying leading restaurant Le Petit for his son, also Henry Schreuder, and on gambling, among others. Karin is said to be employed by the National Intelligence Agency.
Floorworx had asked the courts to freeze all their bank accounts pending the civil case and the family has been given until January 12 to file papers indicating if they intended to oppose the application.
Accentuate’s directors said internal investigations would continue in an effort to bring the matter to a speedy conclusion. They said urgent action was also under way to recoup any misappropriated funds.
Although the potential quantum of the alleged fraud was not disclosed‚ directors advised shareholders that no adjustments to any previously reported results were anticipated and that no contingent liabilities had arisen.
But the alleged fraud at Floorworx could further rattle already shaky investor sentiment for Accentuate. The company’s shares trade at less than half the last stated tangible net asset value of 127c per share.
It comes just months after investment company Trustee Board Investments (TBI) emerged as an influential shareholder in Accentuate.
In the third quarter of this year TBI acquired a 25.23% stake in the company after buying out a consortium of dissenting Accentuate shareholders spearheaded by former Coronation Capital executives. — BDlive
Floorworx: JSE warned of fraud
The stock exchange news service (Sens) notice by the listed company, Accentuate, comes after reports that Floorworx was seeking civil and criminal action against its East London financial director, Henry Louis Schreuder.
The company alleges Schreuder defrauded the company out of about R70-million over 10 years, and it obtained an interim high court order to freeze his and his family’s bank accounts.
According to the Sens announcement yesterday‚ an internal audit at Accentuate uncovered “certain suspicious activities” at Floorworx Africa.
The company said non-compliance with approved policies and procedures suggested fraud had been committed.
It confirmed that a criminal case had been opened and urgent interdicts had been taken out against the alleged perpetrator and related parties to protect Accentuate’s interests.
The Daily Dispatch last week reported on fraud allegations amounting to R70-million involving Schreuder.
He allegedly spent the money on his wife Karin, on buying leading restaurant Le Petit for his son, also Henry Schreuder, and on gambling, among others. Karin is said to be employed by the National Intelligence Agency.
Floorworx had asked the courts to freeze all their bank accounts pending the civil case and the family has been given until January 12 to file papers indicating if they intended to oppose the application.
Accentuate’s directors said internal investigations would continue in an effort to bring the matter to a speedy conclusion. They said urgent action was also under way to recoup any misappropriated funds.
Although the potential quantum of the alleged fraud was not disclosed‚ directors advised shareholders that no adjustments to any previously reported results were anticipated and that no contingent liabilities had arisen.
But the alleged fraud at Floorworx could further rattle already shaky investor sentiment for Accentuate. The company’s shares trade at less than half the last stated tangible net asset value of 127c per share.
It comes just months after investment company Trustee Board Investments (TBI) emerged as an influential shareholder in Accentuate.
In the third quarter of this year TBI acquired a 25.23% stake in the company after buying out a consortium of dissenting Accentuate shareholders spearheaded by former Coronation Capital executives. — BDlive
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