Blue faults Deloitte on delays
BLUE Financial Services has again postponed the release of its annual financial statements, this time saying auditor Deloitte was unable to complete the auditing process.
BLUE Financial Services has again postponed the release of its annual financial statements, this time saying auditor Deloitte was unable to complete the auditing process.
The troubled microlender said yesterday that Deloitte had advised the company that it would not be in a position to “recommence the December 2013 audit, as a result of continuing capacity issues”.
Blue said Deloitte informed the company in June 2014 that it would not be held eligible for the audit, either on a consolidated basis, or on an individual subsidiary basis, and stopped all work in completing the 2013 consolidated audit.
CEO Johan Meiring could not be contacted, but Blue said earlier that some audits had been completed. These included Kenyan and Mauritian operations, but those in Namibia, SA, and Swaziland remained incomplete. “The vast majority of the audits remain outstanding,” Blue said.
Mr Meiring said in February that results should be reported within two to three months. He also indicated that progress had been made in implementing a new funding structure that would have the support of unidentified shareholders.
However, shareholders continue to reject any new restructuring of the group under Mr Meiring’s helm. He has been CEO since 2010.
Mr Meiring’s Mayibuye company, which owned 54% of Blue Financial, injected R69m into Blue last year to maintain its existing lending book. Blue said this was effectively debt on Blue’s books on which Mayibuye earned interest.
Blue has not provided any further information on the proposed restructuring of the company, which is a precursor for Blue resuming trade on the JSE. Trading was suspended in 2013, when the company had a market cap of R1bn, after it failed to publish results for two successive financial years.
The original restructuring plan was to convert debt of R468m into equity and to implement a rights issue. But shareholders have held back support for any further investments, pending the release of results.
Kenyan and Mauritian operations were completed, but not those in Namibia, SA and Swaziland