Jamaica Broilers released a damning report in March this year of management’s stewardship in its January third quarter Results. The directors “advised that it had identified several issues related to expense management and operational controls in its U.S. Operations and had engaged external advisors in the United States to review operational control and any implications it had for the financial performance of the U.S. Operations.”
Christopher Levy – Jamaica Broilers President and Chief Executive.
The group is now updating investors on the latest information. “Having received preliminary and not yet finalised reports from its external advisors, and having assessed the financial performance of the U.S. Operations, the Company wishes to disclose the following material information, which it believes could have significant implications for the financial statements of the Company, namely unsubstantiated accounting valuation methodologies affecting several financial statement line items, including Inventories and Biological Assets.”
“The issues identified appear to constitute material prior period errors and will, once determined and finalised, be fully corrected following the conclusion of the annual financial audit for the Company. As a result of the likely restatement of inventories and biological assets, we anticipate a material negative impact on the historical profitability of our U.S. operations and the Group’s consolidated retained earnings and capital.”
The Company wishes, however, to assure its shareholders and stakeholders that the Board and Senior Management of the Company have been, and are taking steps, in conjunction with its legal and financial advisors, to address the above referenced issues related to the expense management, operational management and financial performance of the U.S. Operations, with a focus on accurate reporting on the profitability of the U.S. Operations and for the Company.
The problem at Jamaica Broilers is a big black eye on the Jamaican securities industry. There are far too many issues in the sector in need of urgent attention, as investors are being severely abused. Those in a position to act and correct the problems have turned a blind eye, until there is a big blow up like Usain Bolt losing his money. What about companies that have billion-dollar loans made to the related companies, interest free while minority shareholders pay the cost of funding them. What about investment firms that breach agreements with their customers and get away with it while the FSC sits and watches.
