Did Raubex break the law? Financial results halted due to whistleblower allegations

One of the leading construction companies in Africa, Raubex has notified its shareholders it will not release its financial results for the year ended 28 February 2025 due to an ongoing investigation into whether the company broke the law or not.

In Raubex’s Stock Exchange News Service (SENS), shareholders were informed that the delay in releasing the financial results is due to an anonymous whistleblower report, dated 22 April 2025, which contained allegations of unlawful or improper conduct concerning the Group.

The company was established in 1974, and was listed on the Johannesburg Stock Exchange (JSE) in March 2007. It operates throughout Southern Africa and Western Australia.

Raubex is focused on ensuring high levels of integrity

The construction company that is investigating the unlawful allegations prides itself on focusing “on ensuring high levels of integrity, professionalism and quality in all of its work”.

Raubex has more than 7 000 employees and aims to be the African leader in road and civil engineering contracting, and the provision of construction materials and mining services, whilst meeting all stakeholder expectations.

Under the Companies Act 71 of 2008, a publicly listed company must make its financial results public within six months of its financial year-end. On 24 March 2025, Raubex said it will publish the Group’s audited financial results for the year ended 28 February 2025 on or about 12 May 2025. However, this did not happen.

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Raubex has not proven the allegations

The SENS announcement released on Friday, 9 May 2025, also informed shareholders that the allegations made by the whistleblowers have not been proven to indicate any unlawful or improper conduct on the part of the Group.

“The Board takes these allegations very seriously. In response, and as part of its commitment to upholding the highest standards of corporate governance, transparency, and regulatory compliance, the Board is seeking independent legal advice on how to address these allegations and is taking all necessary steps to investigate them.”

Raubex said it is wise to wait until most of the investigation is complete before releasing its financial results.  

Halting annual financial results

The construction company stated that at this time, they cannot provide a definitive date for when they will release the financial results.

“The Company will proceed with the finalisation and publication of its financial results as expeditiously as possible.

“The Company will provide shareholders with an update on the anticipated timing for the release of its Financial Results as soon as there is further clarity, noting that (i) it is not anticipated that the conclusion and the outcome of the investigation will have any impact on the Financial Results; And (ii) the earnings and headline earnings per share guidance, as provided in the Trading Statement, are anticipated to remain unchanged.

“The Board will keep shareholders informed of any material developments in this matter.”

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