Struggling Construction Giant, Group Five, Gets Ditched By External Auditor PwC
Troubled construction giant Group 5 has been ditched by its external editor PricewaterhouseCoopers.
The company announced on Wednesday notifying its shareholders of the auditor’s decision to quit with immediate effect. The firm resigned as auditor of the company for the financial year that began in July 1 2018.
PWC’s move to quit comes hardly two weeks since a number of executives and non-executives of the construction firm resigned. The company chair Nonyameko Mandindi stepped down alongside three directors including former CEO Michael Upton.
“PwC’s reasons for resigning relate to the resignation by a number of non-executive directors of Group Five, and the resignation by a number of senior executives and key finance staff members, which has increased the risk of continuing as external auditors,” the group said.
Following PWC’s resignation, the firm has said that it would begin the process of designating a new auditor.
In April this year, the company was placed under “business rescue” after lenders pulled funding following cash flow problems. The situation forced the construction company which is one the biggest in South Africa to file for bankruptcy protection.
The construction firm posted in its website data showing that it made an aggregate loss of USD 129 Mn in the eight months to end-February. In 2017, Group 5 made losses of approximately USD 57 Mn while in the year to end June, it made a loss of USD 93 Mn.
Featured Image Courtesy: Group 5
