Three senior executives at Altron Nexus have been placed on precautionary suspension after an investigation revealed potential internal irregularities.
In June, parent company Altron received a tip-off from a whistle-blower regarding the irregularities. The company said it immediately initiated an investigation into the matter.
The preliminary findings have revealed “possible deviation from procurement processes” involving an estimated R23 million, and early profit recognition of approximately R20 million in the 2018 financial year.
Altron Group CEO Mteto Nyati said the company views the 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.”
“We are following due process and the three executives may go through a disciplinary hearing, overseen by an independent chairman,” added Nyati.
Altron previously received information of alleged procurement irregularities at Altron Nexus from a whistle-blower in June 2018 and appointed independent investigators to look into the matter – but found no evidence of irregularities at the time.