The Mustek board has issued a statement concerning irregular expenditure during the 2023 financial year in Sizwe Africa IT Group, in which Mustek holds a minority share.
The company stresses that Mustek’s nominee director is appointed in a non-executive capacity to the Sizwe board and is accordingly not directly involved in the everyday administration of Sizwe’s business activities.
An internal audit revealed that certain expenditure during the 2023 financial year, by certain employees of Sizwe, did not follow due processes and procedures prescribed by the company and was beyond the ambit of the authority delegated to such employees.
The board of Sizwe has committed to taking the necessary steps to fully investigate and address this irregular expenditure, including reporting the matter in terms of the relevant laws and regulations. The investigation is being conducted in collaboration with external experts to ensure an unbiased and proper review.
As part of the process, the Sizwe employees suspected of being involved in the irregularities have been suspended from their employment and will be subject to the appropriate disciplinary procedures.
The irregular expenditure will be accounted for in Mustek’s results to be released for the financial year ended 30 June 2023. It is expected to have an effect on both earnings per share and headline earnings per share of between 30 cents and 40 cents based on a weighted average number of shares of 58,5-million in issue.