JSE-listed technology firm Altron said on Friday it has placed executives at one of its subsidiaries on precautionary suspension following an investigation that has revealed potential internal irregularities.
The three executives work for Altron Nexus.
Altron Nexus provides a variety of converged telecommunication services ranging from the distribution of professional two-way radio products and systems across sub-Saharan Africa through Alcom Radio Distributors, operating the largest trunked radio network in South Africa through Fleetcall and providing end-to-end ICT system integration services through Alcom Matomo.
The executives were suspended after an investigation that has revealed potential internal irregularities.
The investigation came after Altron received information from a whistle-blower in June 2018.
Altron, thereafter, appointed independent investigators to look into alleged procurement irregularities among a few senior executives within Altron Nexus.
The investigation found no evidence of irregularities but made recommendations on procurement process improvements and reporting obligations, which were implemented.
However, in June, Altron received a second tip-off from a whistle-blower on similar allegations.
The company immediately initiated another investigation conducted by forensic services company, Naledi Advisory Services.
The preliminary findings have revealed potential deviation from procurement processes, involving an estimated R23 million, and early profit recognition of approximately R20 million in the 2018 financial year, according to Altron.
“We view these allegations in a serious light. Accordingly, this investigation is in line with our zero-tolerance to unethical conduct, despite the amounts not being material to Altron’s financial position. Over the past three years, we have been steadfast in building a culture of good governance driven by our values of openness, honesty and integrity. Our employees are now able to come forward with any claims of misconduct without any fear of retaliation,” said Altron Group CE Mteto Nyati.
“We are following due process and the three executives may go through a disciplinary hearing, overseen by an independent chairman. While the investigation is on-going, we would like to assure our customers, partners and employees that plans have been put in place to ensure business continuity at Altron Nexus.”