BLUE FINANCIAL SERVICES LIMITED - Update on regulatory status of Blue

Update on regulatory status of Blue

BLUE FINANCIAL SERVICES LIMITED
Incorporated in the Republic of South Africa
Registration Number: 1996/006595/06
JSE Code: BFS
ISIN: ZAE000083655
(“Blue” or “the Company” or “the Group”)


UPDATE ON REGULATORY STATUS OF BLUE


   1. BACKGROUND


Shareholders are referred to the announcements published on the Stock
Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 26 June
2013 (“June 2013 SENS”), whereby shareholders were advised of the
Company’s voluntary suspension of trading in Blue securities, 26 August 2013
(“August 2013 SENS”), 31 October 2013 (“October 2013 SENS”), 6
December 2013 (“December 2013 SENS”), 1 April 2014 and 30 April 2014
(“April 2014 SENS”), 30 October 2014 (“”October 2014 SENS) whereby
shareholders were updated on the developments at Blue. This includes the
conversion of debt in terms of the debt rescheduling agreement (“DRA”), the
restructuring of Blue Financial Services (South Africa) Proprietary Limited
(“Blue SA”), the forensic investigations launched in 2010 and 2013
respectively and the status of the full year ended February 2013, six months
ended 31 August 2013, the full year ended February 2014 and the six month
ended 31 August 2014 financial results. This announcement serves as further
communication to shareholders on the aforementioned matters.


   2. UPDATE ON INVESTIGATION COMMISSIONED IN 2010


 The forensic investigation commissioned by the Board of the Company in
 2010 has been completed. Horwath Forensics SA (“Howard Forensic”) was
 appointed to undertake the investigation and their forensic report has
 subsequently been issued. In this regard, the Company has reported to the
 Directorate of Priority Crimes in terms of section 34 of the Prevention and
 Combating of Corrupt Activities Act. The Company will continue to offer its
full support to all regulatory bodies in their investigation of this matter.
The Company has instructed its legal team to start with legal proceedings
against such parties as the report has identified.


3. UPDATE ON INVESTIGATION COMMISSIONED IN 2013


  In the June 2013 SENS, the Company advised that the Board had
  commissioned a new forensic investigation in May 2013. In this regard,
  Horwath Forensics was appointed by the Board of the Company to undertake
  the investigation, which includes inter alia investigating transactions between
  the Company and Leonox Investments (Pty) Ltd (“Leonox”). This specific
  forensic investigation has been finalised and the forensic report has been
  handed to the Company’s auditors to enable them to review the report.


  The Company has reported to the Directorate of Priority Crimes in terms of
  section 34 of the Prevention and Combating of Corrupt Activities Act.


  The Company will continue to offer its full support to all regulatory bodies in
  their investigation of this matter.




4. FEBRUARY 2013, AUGUST 2013, FEBRUARY 2014 AND AUGUST
  2014 FINANCIAL RESULTS (“The Financial Results”)


  The Company is currently engaging its auditors so that they can advise of the
  timelines they require concluding the 28 February 2013 audit. Initial
  indications by the auditors are that the finalisation of the audits of the financial
  results of the operating entities other than the South African entities will be
  completed by February 2015. The auditors have indicated that they will
  commit to a final date for completion of the audit of the financial results of the
  South African entities in January 2015.

  With regards to the 28 February 2014 financial results, it should be noted that
  the audit has already commenced and it is expected that these results will be
  finalized in a relative short space of time once the 28 February 2013 numbers
  have been concluded.


  The Board of the Company is fully aware of the importance of concluding the
  Financial Results and would therefore like to give shareholders the comfort
  that the matter is being given the highest priority.


  Once the financials have been released, the Company will announce its
  forward-looking strategy




   5. TRADING OF SECURITIES


       The Board of the Company wishes to advise that it is committed to publishing
       the Financial Results as soon as practically possible, at which point the
       company will apply to the JSE to recommence with the trading of Blue
       securities on the stock exchange operated by the JSE.




Designated Advisor
Grindrod Bank Limited


Randburg
30 December 2014

Date: 30/12/2014 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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