Abil delays results announcement

Failed South African lender African Bank Investments (Abil) said on Tuesday it had delayed publication of its annual results as it untangles "audit complexities" related to the business rescue of two of its units.

Published on:

04 Nov 2014, 9:46 am

JOHANNESBURG (Reuters) – Failed South African lender African Bank Investments (Abil) said on Tuesday it had delayed publication of its annual results as it untangles "audit complexities" related to the business rescue of two of its units.

Abil collapsed in August under the mounting weight of bad debts, leading the central bank to step in with a 17 billion rand ($1.5 billion) rescue plan that saw the bank placed under curatorship, or outside supervision.

Abil said the placement of Ellerine Furnishers Proprietary Limited and Ellerine Holdings Limited, both units of the lender, under business rescue had "resulted in these entities being deconsolidated" or split from the group.

"This has resulted in some accounting and audit complexities that will take some time to resolve and therefore the announcement of the annual results is expected to be delayed."

Abil's results for the year to the end of Sept. 30 were scheduled to be published on Nov. 17. It gave no new date.

The central bank said in September it was investigating Abil for reckless lending, questionable management practices and fraud. [ID:nL5N0R33OC]

(1 US dollar = 11.0486 South African rand)

(Reporting by Ed Stoddard; Editing by Clara Ferreira Marques)

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