Trustco Group Holdings has suffered a setback in its review application regarding the Johannesburg Stock Exchange (JSE) decision around its financial statements.
The company’s application for leave to appeal to the Supreme Court of Appeal was dismissed with costs by Judge Sulet Potterill on Monday.
“Trustco applied to Judge Potterill for leave to appeal the November 7, 2022 order, which dismissed Trustco’s review application, to the Supreme Court of Appeal. The application for leave to appeal was heard on January 30, 2023 and on the same date, was dismissed by Judge Potterill with costs,” the JSE said in a SENS announcement.
The JSE had previously ordered Trustco to revise and restate its financial information for the year ending 31 March 2019 and interim results for the six months to 30 September 2019 due to non-compliance with its listings requirements. The bourse had found errors that inflated Trustco’s profits by a combined N$2.1 billion, which the company had disputed.
The errors included the classification of gains derived from loans that were written off on two occasions with a gain value of N$1.5 billion, the reclassification of unsold erven held by Trustco in a property development from inventory to investment property, showing a N$693-million gain, and the recognition of revenue in the sale of undeveloped land.
Namibia-based Trustco operates in three segments: insurance and investments; resources; and banking and finance.
