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Marac reports NZ$2.5 mln loss on one suppressed problem loan
February 8th, 2010Marac Finance announced to the NZX it would make a NZ$2.5 million provision for an unauthorised 2003 loan that appears to have been suppressed. The irregular loan was found following an internal audit, Marcac said, adding it would make no further comment on the loan before its half year announcement.
Here is the release from Marac:
An internal audit of MARAC’s lending activities has uncovered an irregularity in relation to one particular business loan.
The loan dates back to 2003 and is the only irregular loan that was found as a result of the new auditing processes introduced by the new management team from October 2009.
The circumstances behind that irregularity have only recently been ascertained, but it involves lending that is outside the company’s internally prescribed practices. The circumstances do not appear to have involved personal gain. However, evidence points to the unauthorised lending having been suppressed.
MARAC will take this irregularity into account in the company’s half year results (which are expected to be announced by the end of the month) and a provision of $2.5 million post tax will be made.
PGC remains confident of meeting its full year forecast.
No further comment will be made regarding this loan ahead of the half year announcement.
Tags: Marac Finance, Pyne Gould Corporation
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February 8th, 2010 at 3:09 pm
I can’t help but wonder if this isn’t somehow related to the news last week that Marac’s Chief Risk Officer has gone missing. Lets see…: “…new auditing processes introduced by the new management team from October 2009…”, “…involves lending that is outside the company’s internally prescribed practices…”, “…evidence points to the unauthorised lending having been suppressed…” Not the sort of stuff a CRO would want to have discovered on their watch, I’d suggest. It will be interesting to see if the two stories are linked.
February 8th, 2010 at 3:19 pm
I was busy on Saturday and didn’t hear that he’d been found. From Newstalk ZB: “Marac finance executive Grant Atkinson, aged 48, was alive and well but dishevelled and slightly disoriented when found about 8.45am. Inspector Les Paterson says police believe he had been sleeping rough in the area, but not in the domain itself, since his company car was seen parked at the domain for four nights since Tuesday.” According to the Marac website, he’s been with the company since 1996, so this dodgy loan happened on his watch. From the Marac website: “Grant in his role of Chief Risk Officer is responsible for all aspects of MARAC’s credit business, including credit approval, review, collection and recovery.”
February 8th, 2010 at 3:37 pm
Les Paterson is a police inspector ? Dame Edna will be pleased to know where he is !