Delta Property Fund listing suspended by JSE

Delta Property Fund plans to release its restated results before the end of February when it will ask for the suspension to be lifted.

The JSE suspended trading in Delta Property Fund on Tuesday after it withdrew its annual financial statements and postponed the release of its interim results in the latest accounting scandal to hit a listed company.

Delta’s stock plunged over 30% last Thursday, a day after it warned shareholder that a forensic investigation by Mazars had found evidence of governance failures and wrongdoing at the company. The probe was also looking into procurement irregularities and the misappropriation of funds by senior executives. Its interim results were scheduled for release the following day but were postponed as its previous annual results for the year to end-February were no longer reliable. As a result, auditors BDO had withdrawn their audit opinion.

Delta said it viewed the suspension as a temporary measure until it was in a position to publish last year’s restated annual financial statements as well as its interim numbers for the six months to end-August. Based on preliminary feedback from its auditors, it planned to release both sets of results before the end of February, when it would apply for the suspension to be lifted.The Board agrees with and supports the Suspension, the ultimate aim being to protect investors and enable accurate price formation,” Delta said.

Its shares rose 9.4% to 35c ahead of the suspension on Tuesday. They’re down 51% this year.

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