MTD Walkers directors likely to face more charges
View(s):Under–fire MTD Walkers PLC directors are likely to face more charges after the capital market regulator directed an audit.
The Securities and Exchange Commission (SEC) hired a local audit firm to get to the bottom of MTD accounts. The auditors will advise future course of action against MTD Walkers taking grave notice of default in payment by the company on the type B debentures issued, the non-submission of the Annual Reports for the financial years ended 2018/2019, interim financial statements after 30 June 2019 and on the complaints received alleging that the assets of MTD Walkers were being sold and funds being siphoned out without proper internal controls.
“The members of the commission, having taken grave notice of the above, have decided to appoint an external firm of chartered accountants to conduct ‘An Agreed Upon Procedure’ to conduct a Special Purpose Audit and to report back to the SEC within a short period of time in order to ascertain whether the SEC is required to take further measures to safeguard the interests of the company, its shareholders, debenture holders and the investing public,” the SEC directive said ordering its Board of Directors, Chief Executive Officer, Chief Financial Officer and all management personnel to desist in any manner from destroying, concealing, altering, removing, amending or cause the destruction, concealment, alteration, amendment or removal of any information that is in the records or books of the company maintained in the ordinary course of business and to pay the fees to the external firm of chartered accountants that will be appointed by the SEC to conduct the said ‘Agreed Upon Procedure’ for the Special Purpose Audit.
The SEC imposed a Rs.36.3 million compounding fee on the MTD directors for breaching four listing rules of the Colombo Stock Exchange (CSE) and violating SEC rule number 6 in the SEC Act which captures the mentioned rule of the CSE. They had paid their dues last month. (DEC)