Incorporated in Ghana, Leasafric is a non-bank institution founded in 1992 to focus on leasing business.
What it means: C & I Leasing owns 71% equity stake in Leasafric and the subsidiary contributes about 10% to the group’s financial performance. It implies the error could affect the figure of the parent company at the end of the financial year-end.
In its notification to the NSE, the board of directors of Leasafric Ghana was expected to meet today to review the matter and would notify all regulators including the Bank of Ghana and carry out a special investigation into the circumstances surrounding the likely errors in the Audited Accounts
Company Secretary, Mbanugo Udenze & Co, explained that while the exact amount in question would be ascertained by the ongoing investigations, they are of opinion that the write-off of the amount might not have any material impact on the group’s net earnings for 2019.
C & I Leasing said it had begun putting adequate measures in place and strengthening its existing risk control framework to prevent a recurrence.
The firm said, “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.
“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.
“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.”