Wrap Text
Quarterly Update
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”)
Quarterly Update
Shareholders are referred to the announcement published on the Stock Exchange News Service
(“SENS”) on 26th June 2013, whereby shareholders were advised of the Company’s voluntary
suspension of trading in Blue Securities, as well as the various quarterly updates and other
announcements published on SENS since then, whereby shareholders were updated on the
developments at Blue.
Publication of financial information
1. The JSE has formally approved the Company providing shareholders with a combination of
audited and unaudited financial information. The Company will as such, as soon as all the
2012 audits conducted by Deloitte have been complete, publish financial information up to
December 2015.
2. The current status of the audits of the various financials are:
Company February Decembe February Decembe February December December
2012 r 2012 2013 r 2013 2014 2014 2015
Blue Not UHY Not UHY Not UHY UHY
Financial Applicable Voscon Applicable Voscon Applicable Voscon Voscon
Services
Complete Complete Completed Completed
Ghana Ltd
d d
Blue Deloitte Not Grant Not Grant Grant Grant
Financial Applicable Thornton Applicable Thornton Thornton Thornton
Complete
Services
d Complete Completed Completed Audit has
Zambia Ltd
d commence
d.
Anticipated
to be
completed
by 31
Blue Financial Services Limited T. (+27) 10 072 0206 E. blue@blue.co.za W. www.blue.co.za
Address 1st Floor Platinum Place, Turnberry Office Park, 48 Grosvenor Road, Bryanston, Gauteng
PO Box 4605, Randburg, 2125, South Africa Registration no. 1996/006595/06
Executive Directors J Meiring (Group CEO)
Non - Executive Directors S M Twala (Chairman)*, A Ber, J A French (American)*, R M Mashishi
(*Independent)
Company Secretary S van der Merwe
A registered Credit Provider NCRCP 133
October
2016..
Blue Deloitte Not BDO Not BDO BDO BDO
Employee Applicable Applicable
Complete Complete Completed Completed Completed
Benefits
d d
Botswana
(Pty) Ltd
Blue Deloitte Not Ernst & Not Ernst & Ernst & Ernst &
Financial Applicable Young Applicable Young Young Young
Complete
Services
d Anticipate Anticipated Anticipated Audit will
Malawi Ltd
d to be to be to be only
completed completed completed commence
by 30th by 30th by 30th on
Septembe October October completion
r 2016. 2016. 2016. of all prior
periods.
Anticipated
to be
completed
by 30th
October
2016.
Blue Deloitte Not BDO Not BDO BDO BDO
Financial Applicable Applicable
Complete Anticipate Anticipated Anticipated Anticipated
Services
d d to be to be to be to be
Namibia
completed completed completed completed
(Pty) Ltd
by 15th by 15th by 30th by 30th
October October October October
2016. 2016. 2016. 2016.
Blue Deloitte Not Audit not Not Audit not Audit not Audit not
Financial Applicable yet Applicable yet yet yet
In
Services commenc commence commence commence
progress
(South ed as we d as we d as we d as we
Africa) await await await await
(Pty) Ltd completio completion completion completion
n by by Deloitte by Deloitte by Deloitte
Deloitte
Blue Deloitte Not Audit not Not Audit not Audit not Audit not
Financial Applicable yet Applicable yet yet yet
In
Services commenc commence commence commence
progress
Ltd ed as we d as we d as we d as we
await await await await
completio
n by completion completion completion
Deloitte by Deloitte by Deloitte by Deloitte
Closure of certain investments
3. As previously advised a decision had been taken to proceed with the liquidation and/or
closure and/or de registration of the following investments of the Company for the reasons
as previously advised:
a. Blue Kenya Ltd
b. Blue Financial Services Swaziland (Pty) Ltd
c. Blue Financial Services Lesotho Ltd.
d. Mobile U (Pty) Ltd
e. Blue Financial Services Mauritius Ltd
Mayibuye Group Liabilities
4. As previously reported, certain entities in Mayibuye Group have exercised its rights in
respect of the securities held over the shareholding in the various subsidiaries in the Blue
Group. Based on the aforegoing the Company can no longer consolidate the various
subsidiaries into its financial statements in terms of the provision of IFRS and will
accordingly reflect them only as investments.
5. A settlement agreement has been reached in respect of the aforementioned liabilities. The
details of which will be published together with the financial information referred to herein
above.
Litigation Update
Herewith a brief overview of the key litigation that is creating uncertainty.
Debt Rescheduling Agreement (“DRA”)
6. As previously advised it is the view of the Company that the process in terms of the DRA
disputes have been completed and the accounts of the Company are in accordance with
that.
7. Despite being party to the dispute resolution proceedings instituted by the lender committee
in respect of the Distribution Plan, four of the total body of Lenders instituted legal
proceedings against the Blue Group which is viewed by Blue as a repudiation of the DRA.
The litigation in question, instituted in: Zambia is to be heard in November2016; Botswana
in December 2016 whilst the South African based litigation has to date not been set down
for hearing.
Blue Cell based litigation
8. Blue Cell, a subsidiary of the Company was liquidated in 2009 by the Company. It is alleged
that the conduct of the previous management of Blue in 2009 that lead to the liquidation of
the entity constituted a breach of an agreement with the minority shareholder
ABSA
9. In terms of the 2011 forensic investigation, it was determined that Dave Van Niekerk, the
previous CEO of Blue, had ceded an illicit loan claim to ABSA bank in payment of his
personal debt to ABSA. The Company made payment in terms of that claim in 2009 in an
amount of R35 million to ABSA bank.
10. The Company has issued summons for repayment of the amount against ABSA bank,
who has joined Van Niekerk as a party to the proceedings.
Envalue
11. Envalue has filed a claim against Blue SA in the amount of R 7,884,605.53 in respect of
alleged compensation for services rendered during 2010.
12. The matter is enrolled to be heard in November 2016.
SARS Claims
13. Based upon the forensic report, into the affairs of Blue prior 2010 under the leadership of
the previous CEO, Dave van Niekerk, it was established that Blue, regardless of what was
reported at the time, never made any profits from 2007 up to the Company’s financial
collapse under the previous management in 2010. Consequently, Blue has been assessed
for income tax which is inappropriate based upon these subsequent discoveries and have
objected to the assessment and the payment of such taxation.
14. As a further consequence of the undisclosed liabilities the amounts paid for such foreign
taxation need to be deducted from the assessment as raised by SARS.
Date: 29/09/2016 02:30:00 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.