The Globe and Mail reports in its Tuesday, Nov. 21, edition that three Glencore executives
have resigned from the board of its subsidiary Katanga
Mining after an internal
review found "material weaknesses"
in its financial reporting controls,
amid a regulatory probe by
the Ontario Securities Commission.
The Globe's Niall McGee writes that on Monday, Katanga announced it is restating a
number of financial documents, including
its consolidated financial
statements for the 2015 and 2016
fiscal years, and its management
discussion and analysis (MD&A) for
the quarters ending March 31, 2017,
and 2016. Katanga also said
its chief financial officer, Jacques
Lubbe, was stepping down.
Katanga is majority
owned by Glencore.
In July, Katanga first announced
it was conducting a review of its
past accounting, and indicated
some of its financial statements
would likely be restated.
On Monday, Katanga said the
review was prompted by the OSC,
which had already started an investigation
into the firm. The OSC is investigating
whether Katanga's previously
filed financial statements were materially
misleading.
The OSC is also looking into the
conduct of certain unnamed directors
and officers.
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