CHOPPIES ENTERPRISES LIMITED - Resignation of auditor and general update

Resignation of auditor and general update

CHOPPIES ENTERPRISES LIMITED  
Incorporated in the Republic of Botswana under Company Number 2004/1681
(“the Company” or “the group”)
BSE Share Code: CHOPPIES
JSE Share Code: CHP
ISIN Number: BW0000001072


RESIGNATION OF AUDITOR AND GENERAL UPDATE


RESIGNATION OF AUDITOR
In accordance with the BSE and JSE Listings Requirements, the Company hereby advises
shareholders that the Company’s external auditors, PricewaterhouseCoopers (‘PWC’) have resigned
as auditors of the Company for the financial year that commenced on 1 July 2018 and ended on 30
June 2019. PWC remains committed to completing the Company and group’s audits for the financial
year ended 30 June 2018, as well as making themselves available for consultation and discussion
with management and, once appointed, successor auditors in order to ensure the smooth transition
to the newly appointed auditors.

PWC’s reasons for resigning relate to their annual risk assessment associated with their continuing
client engagements conducted by them following the Extraordinary General Meeting of
shareholders of the Company held on 4 September 2019.

The Board will commence the process of appointing new auditors and will advise shareholders once
the new auditors have been appointed.


UPDATE ON MATTERS RAISED IN THE ANNOUNCEMENT DATED 11 SEPTEMBER 2019
The Board provides the following update on matters raised in the announcement of 11 September
2019:

1.    The Board has, as a matter of priority, in order to stabilise of the businesses of the Company;

      1.1.    engaged, and will continue to engage, with the lenders, in order to meet their demands
              and to bring stability to the business of the Company. The Board is hopeful that
              agreement will be reached shortly.
      1.2.    engaged extensively with the group’s auditors , PWC and has set management and PWC
              on a path that will result in expeditious completion of the audit of the outstanding 2018
              financial statements.
      1.3.    continues to rectify the serious corporate governance deficiencies in the Company
              recognised and as recommended in the Desai Law Group Report, by way of an overhaul
              of the Company’s corporate governance structures. These reviews are ongoing.

2.    The Board continues to investigate the matters raised in the Desai Law Group and Ernst &
      Young Reports (“the Reports”) and has determined, in the interests of fairness, transparency
      and the responsibility to uphold the law, to appoint an independent Senior Counsel to
      undertake a holistic review of the Reports, the current facts and available evidence, and then
      advise without fear or favour, objectively and impartially, on, inter alia: -

      2.1       the charges brought against Mr Ottapathu in the disciplinary proceedings against
                him;
      2.2.      whether the Company should proceed against any directors; and
      2.3       whether the Company should proceed against any other person.

      The Board will take steps to ensure that due and fair and equitable process is followed in each
      case so that any person against whom claims or charges are brought has proper opportunity
      to answer the claims and charges in order that all issues and facts can be properly ventilated
      and considered.

3.    Mr Ottapathu has reconfirmed his preparedness to participate in disciplinary proceedings and
      to answer the charges that may be levelled against him.

      The Company's primary listing is on the BSEL and its secondary listing is on the JSE. The listings
      on both exchanges are suspended.

      By order of the Board
      27 September 2019


      BSEL Sponsoring Broker
      African Alliance Botswana Limited

      JSE Sponsor
      RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 27/09/2019 04:45:00
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