Africa-Press – Namibia. THE Johannesburg Stock Exchange (JSE) has confirmed it has kicked off family-owned Trustco Group Holdings from the bourse.
However, there is still leniency until tomorrow afternoon. Trustco has appealed the decision, citing it intends to apply to the South African High Court to review a ruling that was issued around errors included in its financial statements. The JSE is currently putting its decision to enforce the suspension on ice until tomorrow on the condition that:
“… should Trustco wish to initiate any legal proceedings and obtain the relief it deems necessary to obtain on an urgent basis in the form of an order from a competent tribunal directing that the implementation of the suspension decision is suspended pending the outcome of an application for reconsideration of such decision, such process must be initiated and delivered by 15h00 on Friday, 18 February 2022,” reads the JSE update.
Trustco in 2019 released financial statements for the full 2019 financial year, and released interim financials in September 2019. Included in those financials were a gain of N$546 million relating to equity, another N$693 million gain from investment property reclassification, as well as a N$1 billion loan write-off passed through profit and loss.
Trustco recognised profit and loss gains of over N$2,1 billion. The JSE then informed Trustco that the treatment of the above transaction was inconsistent with International Financial Reporting Standards, and it was ordered through the Financial Services Tribunal that it needed to correct the financial statements, remove the gains, and restate its financial statements.
Trustco has, however, been adamant that the said transactions were not treated erroneously, and has not effected any corrections to date. In its recent update, the JSE said if Truscto by Friday confirms that legal action has indeed been taken, it would “suspend the implementation of the suspension decision until 15h00 on 11 March 2022, to allow for these proceedings of first instance to run their course”.
Should Trustco not do so, “the JSE will immediately implement the suspension decision without further notice to Trustco”.
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