Aggrieved businesswoman Baleseng Zinyana has lodged a formal complaint with the Independent Regulatory Board for Auditors (IRBA) in 2021 against the auditors of her company, NJM Heat Treatment and NDE Services (NJM), for suspicious of fraudulent activities.
In the complaint, which was leaked to by a source, Baleseng Zinyana said she acquired 26% of the engineering company’s shares, which she paid for in cash in 2014. She said after the reviewed financial statement for the year ended February 28 2019 was presented, the board resolved in November 2019 to appoint an audit firm to perform an audit for the 2018-2019 year as well as the years to follow.
The board appointed Symonds CA (SA), which audited and submitted the financial statements for the year ended February 29, 2020, which were signed and approved on October 9, 2020, although no annual general meeting was held.
“Although I am still a shareholder, I was not involved in the approval of the financial statements and or any discussion on the management report on any formal meeting.”
Baleseng Zinyana said after reviewing the financial statement, she picked up errors or misstatements. The comparative figures disclosed, said Zinyana, differed from the signed reviewed financial statements for the year ended February 28, 2019 that were signed and approved on October 4, 2019.
In addition, she said, the turnover was reduced. Baleseng Zinyana further alleged that the turnover for the year ended February 28, 2019 was reduced from over R68-million to R49-million, which further decreased to R44-million. NJM’s profit, she said, was also reduced for the year ended February 2019 from R5 656 710 to R656 393 before taxation.
Baleseng Zinyana said NJM’s certain expected material disclosure and note were not included in the audited annual financial statements for the year ended February 29, 2020.
“Disclosure not included and or outstanding include inventories, loans to shareholders, trade and other receivables and cash and cash equivalents as well as the bank overdraft.
“Due to the above items, I believe the financial statements for the year ended 28 February 2019 as well as for year ended 29 February 2020 are not a true and fair reflection on the financial performance and or position of the company,” reads Baleseng Zinyana’s complaint.
IRBA spokesperson Lorraine Lorraine Van Schalkwyk confirmed that a complaint was received from Baleseng Zinyana. “Yes, the IRBA received a complaint. An investigation is underway.”
Symonds CA (SA) managing director Andre Du Toit said: “IRBA had submitted some documents to us which we were asked to respond to. We did respond in details two months ago. We submitted correct facts and statements, and we are waiting to hear from them.”
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