SPAR South Africa admits to unusual loan allegations

JOHANNESBURG, Jan 19 (Reuters) – SPAR Group of South Africa (SPPJ.J) said on Thursday that it agreed with its auditors that a problem has been reported about a fake and fraudulent loan that occurred at the shopping mall.

Online newspapers Business Day, News24 and news magazine Financial Mail are reporting various allegations of fraudulent loans and branding and discrimination brought by independent customers using the SPAR brand.

In December SPAR denied that the financial allegations were a sign of “poor care” or discrimination against some of its suppliers. at races or store locations.

“Last month, research was done by SPAR and external auditors about this issue, after the process, the Committee agreed SPAR management and auditors believe that a reportable error has occurred,” he said in a statement.

The retailer and wholesaler added that its auditors were satisfied that this was an isolated case and would not be repeated. , “and sufficient steps have been taken to prevent any resulting loss”.

According to the SPAR Board of Directors, a written loan agreement was signed between the debtor and the borrower in a commercial bank, at regular interest rates and fixed repayment periods.

“However, the Board concluded that it appears that the loan did not serve any real commercial and economic purpose and that should not have been done,” added SPAR.

The general review of all the loans arranged by SPAR for the retailers revealed two other transactions of the same nature, and the value of these three loans was 11 million rand ($640,977) and occurred in five years ago, the company said.

SPAR further stated that there is no evidence to support any allegation of accounting irregularities and any other transaction of loan

On Tuesday, SPAR announced that Chief Executive Officer Brett Botten, 57, will retire from the company on January 31 after two years at the helm.

Botten said Thursday that he requested early retirement.

($1 = 17.1613 rand)

Report by Nqobile Dludla; Edited by Emelia Sithole-Matarise

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