AYO and Mustek said the irregular expenditure had only recently come to light, and were disclosed voluntarily in the interests of transparency, accountability, and adherence to regulatory compliance.
AYO Technology Solutions (AYO) and Mustek Limited yesterday alerted shareholders to “certain irregular expenditure” that occurred in the year to August 2023 in Sizwe Africa IT Group (Sizwe) - both AYO and Mustek are major shareholders in Sizwe.
Sizwe is a 55% held subsidiary of AYO and the effect of the irregularities on AYO’s earnings per share and headline earnings a share (Heps) was expected to between 6.05 cents and 7.39 cents, based on 343.8 million in issue, AYO said yesterday in a statement.
Mustek said the effect on its earnings per share and headline earnings per share would be between 30 cents and 40 cents, based on 58.5 million in issue. Mustek’s Heps came to 221.74 cents for the six months to December 2022.
AYO and Mustek said the irregular expenditure had only recently come to light, and were disclosed voluntarily in the interests of transparency, accountability, and adherence to regulatory compliance.
AYO said its nominee directors, appointed in a non-executive capacity to the Sizwe board, were not directly involved in the day-to-day operations and business activities of Sizwe.
Similarly, Mustek said its nominee director was a non-executive director on the Sizwe board and was also not directly involved in the daily administration of Sizwe’s business activities.
“An internal audit revealed that certain expenditure incurred during the 2023 financial year, by certain employees of Sizwe, did not follow due processes and procedures prescribed by the company and was beyond the ambit of the formal authority delegated to such employees,” AYO said in a statement, adding that none of its own employees, directors or representatives were involved.
Necessary steps to investigate and address the matter, including reporting it in terms of laws and regulations, would be taken and the Sizwe employees suspected of being involved had been suspended from work and would face disciplinary processes, the statement said.
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