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LAB - Labat Africa Limited - Reportable Irregularities

Release Date: 11/08/2011 07:16
Code(s): LAB
Wrap Text

LAB - Labat Africa Limited - Reportable Irregularities LABAT AFRICA LIMITED Incorporated in the Republic of South Africa (Registration number 1986/001616/06) JSE code: LAB ISIN:ZAE000018354 ("Labat" or "the company") REPORTABLE IRREGULARITIES Shareholders are advised that, during the period when Aurora appointed directors were in charge of the company, two irregularities were discovered and reported to the company auditors, which were subsequently identified as reportable irregularities. Following the Company`s reply, the auditors have confirmed to IRBA that the reportable irregularities are no longer taking place and whilst there is no certainty, the directors of the Company have taken adequate steps for the prevention or recovery of any loss as a result thereof. The first of these related to cheques to the value of R9 million signed by unauthorized signatories of the company for the payment of Aurora debt. These cheques were stopped at the bank. The company successfully defended this claim, have consulted with attorneys and is of the opinion that there is no liability in respect of this Aurora debt. The second matter relates to a $2 million investment which an investor had been led to believe was to be invested in Labat but which was "diverted" to an Aurora account. These funds were never received by Labat and the Company`s attorneys and directors are of the opinion that there is no obligation or liability on behalf of Labat. The directors are informed that the investor is pursuing the matter against the third parties. Both of these "irregularities" occurred during the tenure of Aurora appointed directors in Labat. These directors have been replaced, the board reconstituted and these matters have been reported to IRBA, the JSE and other relevant authorities for appropriate action. The directors are accordingly of the view that there is no financial liability which needs to be raised in the books of Labat in relation to these matters. 11 August 2011 Sponsor Arcay Moela Sponsors (Proprietary) Limited Date: 11/08/2011 07:16:06 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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