The Johannesburg Stock Exchange (JSE) has fined local ICT company, EOH, R7.5 million, of which R2.5 million is suspended over five years.
EOH is the largest technology business in Africa.
The fine is based on past financial reporting errors identified in its 2019 annual results and its 2020 interim results.
SundayWorld reports that the JSE released a statement that said the accuracy and reliability of financial information published by companies are of critical importance in ensuring a fair, efficient and transparent market.
“The errors were material and extended over a number of years, and in correcting these errors, the Company restated its annual financial statements for the year ended 31 July 2018, and restated the opening balances for the year ended 31 July 2017.”
According to a report by Moneyweb, the JSE found that EOH failed to comply with section 8.62(b) of the JSE listing requirements in that the company did not adhere to reporting standards in respect of the annual financial statements for the 2017 and 2018 financial periods.
In respond to the JSE’s decision, EOH released a statement that the findings are in line with the group’s own findings, following its own internal review of the financial periods approved by the previous management team.
Image credits: IOL and EWN