adminPAPER products manufacturer Hunyani Holdings said yesterday it has appointed new managers at its divisions after former bosses were implicated in an accounts fiddling scandal. The Zimbabwe Stock Exchange-listed company said in a trading update managers at its Flexible Products Division had over valued inventories by $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 claims, 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 managers 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 $426,000.
It said it had also earned $2.1 million from the sale of its properties in Bulawayo and Norton.
Group chief executive 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