Abil delays results announcement

Abil delays results announcement

2014-11-04 10:29

Johannesburg - Failed lender African Bank Investments (Abil) said on Tuesday it has 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 Reserve Bank to step in with a R17bn rescue plan that saw the bank placed under curatorship, or outside supervision.

READ: African Bank placed under curatorship

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.

READ: Rescue plan for African Bank

"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 September 30 were scheduled to be published on November 17. It gave no new date.

The Reserve Bank said in September it was investigating Abil for reckless lending, questionable management practices and fraud.