Ecsponent starts probe into alleged misappropriated loan

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The group has initiated a forensic investigation into a $7.5m third-party loan to one of its subsidiaries

Ecsponent has begun a forensic investigation into $7.5m in funds received by a Mauritius-based subsidiary that may have been misappropriated.

The alleged activities of the offenders has affected the company’s ability to service the monthly interest and repay the principal amount of the facility, the statement read.Ecsponent said it had instructed its legal counsel to institute legal action against certain parties who may be potentially liable, while it was also seeking to renegotiate the terms of the facility, which is guaranteed by the company.

In a separate statement on Tuesday, Ecsponent said it was battling with the fallout from Covid-19, with total assets decreasing by 53% to R1.51bn in the nine months to end-March.

 

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