adminPAPER products manufacturer Hunyani Holdings yesterday said it has appointed new managers at its divisions after former bosses were implicated in an accounts financial fixing scandal.
The Zimbabwe Stock Exchange-listed company said in a trading update managers at its Flexible Products Division had overvalued inventories by US$567 000.
“A tip-off was received during the year to the effect that divisional management had overstated results at Flexible Products Division,” the group said.
An investigation had been subsequently launched into the misdemeanour revealing that accounts had been overstated by over half a million dollars.
“The result of the investigation revealed that the overstatement had been made by divisional management in order to reflect enhanced financial results. There are no indications that the group lost cash and or inventories,” the group said.
While the group did not reveal the fate of the mangers involved in the scandal, it said “disciplinary measures had been implemented”, with new management appointed to run the division.
Hunyani said it had also revalued its timber after a fire damage which had seen the value depreciating by at least US$426 000.
It said it had also earned US$2,1 million from the sale of its properties in Bulawayo and Norton.
Group chief executive Mr Dave Bain earlier indicated that the cash from the sale of properties would be used to fund installation of generators at subsidiary companies and a new tobacco modification line. The effect of the transactions would be seen when the group releases its year end results in January next year.
Hunyani is a diversified company with operations in among others the printing and packaging industry, pharmaceuticals, and beverages industries. — New Ziana.
Online Reporter