C&I Leasing to Probe Financial Error Detected in Audited Accounts

December 11, 2019
C&I Leasing Shares

By Modupe Gbadeyanka

The management of C&I Leasing Plc has expressed its determination to critically look into the financial error observed in the audited accounts of its subsidiary in Ghana, Leasafric Ghana Limited.

The firm, in a notice to the Nigerian Stock Exchange (NSE), disclosed that the board of directors of Leasafric Ghana would review the matter with a view to preventing a similar occurrence in the future.

In the disclosure, it was stated that the board of the subsidiary would conduct a special investigation into the circumstances surrounding the likely errors in the Audited Accounts and also notify all regulators, including the Bank of Ghana, of outcome of the probe.

Leasafric is a non-bank financial institution incorporated in Ghana in 1992, to carry on the business of finance leasing as its principal business. C&I Leasing Plc.

C&I Leasing controls 71 percent equity stake in Leasafric, which contributes about 10 percent to the group’s financial performance.

The Nigerian firm said it had begun putting adequate measures in place and strengthening its existing risk controls framework to prevent a recurrence.

“It is noteworthy to mention that our detection of this financial error is as a result of the effective implementation of the company’s robust corporate governance framework which is closely monitored by the board and we remain committed to ensuring the continued full and effective implementation of the framework,” it stated.

C&I Leasing noted that while the exact amount in question will be ascertained by the ongoing investigations, it estimates that the write-off of the amount may not have any material impact on the group’s net earnings for 2019.

“Nevertheless, we assure all the stakeholders and the investing public that C&I Leasing Plc is resilient and well diversified to cushion any likely impact of the financial error,” the disclosure said.

It further said, “In spite of the likely impact on our profit target for 2019, we are optimistic that with our exceptional track record in major sectors of the economy, we expect to meet our profit targets for 2020, and beyond. We therefore do not envisage that this event will have any material negative impact on C&I Leasing Plc’s on-going rights issue.”

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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