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ASA Resources sacks CEO, FD over financial mismanagement at Freda Rebecca

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ASA Resources sacks CEO, FD over financial mismanagement at Freda Rebecca

HARARE – ASA Resources (formerly Mwana Africa) has dismissed its chief executive and financial director over financial mismanagement which resulted in funds amounting to several million US dollars being unprocedurally transferred from the accounts of its subsidiary Freda Rebecca Gold Mine.

In a statement, ASA said it had removed Yat Hoi Ning from his post as chief executive and Yim Kwan, the finance director with immediate effect. This follows after an investigation initiated by the board, which found that funds “amounting to several million dollars” had allegedly been transferred from the accounts of its 85%-owned Freda Rebecca gold mine (FRGM) to entities in China, without full value being received by FRGM.

The group has appointed Toi Muganyi as its interim CEO, Carla Mackay as interim FD and Batirai Manhando as interim executive director.

Ernst & Young, auditors to the group will undertake further investigation, according to the group. “It is intended that a full procurement audit will be undertaken as necessary.”

The group said it has identified that funds are still to be accounted for by subsidiaries managed from Hong Kong. “This is a matter that Ernst & Young will be attending to. The cash analysis reveals that there is a pressing need for cash at ASA, FRGM and BNC levels and that the matters now under investigation have prejudiced their normal cash flows.

“Steps are being taken to bring all cash management under the direct control of Carla Mackay and Jan Lampen (deputy finance director who already has been given a dual role of heading financial controls at BNC and FRGM).”

The group said it had informed the proper authorities of these developments.

In consequence of the developments, a number of appointments made by Hoi Ning of Chinese managers and department heads are being “rapidly reviewed and are likely to change.”

The group earlier this month received anonymous allegations referring to certain aspects of the financial management at the mine. At the time, the company said the allegations were “mischievous and their origins appear to have certain similarities to the previously notified lawsuit served on Freda Rebecca in January”.

Asa, however noted there had been no thefts of gold from the gold room at FRGM, nor had there been shipments of gold ore to China as alleged by certain sections of the media.

The company’s shares on Tuesday fell by 51% on the London Stock Exchange

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