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Staff Writer

JSE fines Delta Property Fund R7.5 million over financial reporting inaccuracies



The Johannesburg Stock Exchange (JSE) has imposed fines and public censure on Delta Property Fund for inaccuracies in its financial reporting spanning from 2018 to 2020.


The JSE levied a total fine of R7.5 million, with R5 million suspended contingent upon certain conditions.


According to statements issued by both the JSE and Delta, the financial discrepancies involved non-compliance with International Financial Reporting Standards (IFRS) and dissemination of false and misleading information to shareholders and the public.


Specifically, Delta failed to adhere to JSE Listings Requirements regarding the preparation and presentation of annual financial statements and interim reports for the aforementioned financial periods.


The decision to fine and censure Delta took into account various factors, including the company's cooperation with investigations, economic conditions, remedial actions by current management, and the interests of stakeholders.


Delta, which owns a portfolio of over 90 properties including significant assets like SARS Bellville and Gauteng, the Bestmed building, and the NPA Building, has been under scrutiny since a forensic investigation in 2020 revealed irregular accounting practices.


The JSE had previously suspended Delta's listing in December 2020 following revelations of an accounting scandal involving former executives.


However, the suspension was lifted in July 2021 after the Reit's new management restated financial results and provided updates on forensic investigations.


The accounting scandal implicated former executives in unauthorised payments, procurement irregularities, and other unethical conduct amounting to approximately R46 million.


While the bourse continues to investigate former executives involved during the relevant period, no specific individuals were named in the recent statements.

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