S.African bank ABIL delays results announcement - CNBC Africa

S.African bank ABIL delays results announcement

Southern Africa

by Reuters 0

ABIL is being investigated for reckless lending, questionable management practices and fraud. PHOTO: Destiny Connect

This as it untangles “audit complexities” related to the business rescue of two of its units.

ABIL collapsed in August under the mounting weight of bad debts, leading the central bank to step in with a 17 billion rand or 1.5 billion dollar rescue plan that saw the bank placed under curatorship, or outside supervision.

[DATA ABL:ABIL] said the placement of Ellerine Furnishers Proprietary Limited and Ellerine Holdings Limited, both units of the lender, under business rescue had “resulted in these entities being deconsolidated” or split from the group.

“This has resulted in some accounting and audit complexities that will take some time to resolve and therefore the announcement of the annual results is expected to be delayed.”

(READ MORE: African Bank’s Ellerines applies for business rescue)

ABIL’s results for the year to the end of 30 September were scheduled to be published on 17 November. It gave no new date.

The central bank said in September it was investigating ABIL for reckless lending, questionable management practices and fraud.

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