Johannesburg - The findings of an investigation into allegations of improper dealings at CS Computer Services Holdings are expected to be revealed this week.
Reunert and Worldwide Africa Investment Holdings, which together hold 57 percent of the listed consulting and information technology services firm, announced last Monday that they had commenced a joint investigation to determine whether there was any substance to allegations that there had been a lack of adequate disclosure in the results of CS Holdings.
The allegations surfaced on Moneyweb's daily business programme on Classic FM the week before.
A team consisting of senior executives from Reunert and Worldwide African is probing Moneyweb's report that CS Holdings had boosted its profits by recording the sale of an electronic document delivery asset to a company known as Faltalia for R18 million in its results and then reversing the sale after the firm had published its results.
CS Holdings chief executive Annette van der Laan was also accused of having a conflict of interest because her ex-husband, Hans van der Laan, was reportedly involved in the deal.
CS Holdings announced on February 10 that its results for the six months to December had been boosted by the restructuring and rationalisation process it had undertaken. It said it was positive that its streamlining process was starting to show positive results.
CS Holdings said it had set aside R7.9 million to cut its permanent staff and fixed infrastructure costs.
Moneyweb also reported that a former employee of CS Holdings had claimed to be a victim of constructive dismissal, having been constantly pressured by Van der Laan on the grounds that the company had no money.
The online business news service said various employees had confirmed that cases of unlawful and related dismissals were sitting at the Commission for Conciliation Mediation and Arbitration.
CS Holdings said in its interim results that it expected to benefit from its successful strategic alignment with Reunert.
However, Reunert is now faced with the unenviable task of investigating its investment and possibly revealing findings that could have a detrimental effect on its share price.
CS Holdings gained 1c to 66c on Friday, while Reunert was unchanged at R25.15.