JSE piles the pressure on Tshwane
Tshwane is under threat of suspension due to its non-submission of financial records after seven months.
The Johannesburg Stock Exchange (JSE) has imposed pressure upon Tshwane, warning it to get its financial records in order on time ahead of March 1.
The JSE highlighted the filing deadline in a notice last week, however, Tshwane plans to wiggle an extension out of the exchange to free itself from any punishment Africa’s largest stock exchange may impose.
The Capital City currently has no audited financial statements to give to the JSE, and a suspension could spell trouble for the financially strained metro over bonds, investment and loans.
Tshwane spokesperson Selby Bokaba said the finalisation of its annual financial records was delayed.
“The delay in the submission of the financials was due to a quality assurance exercise which the metro had to conduct as a means of improving the quality of the financials to ensure a fair representation of the status of the books.
“Discussions with the JSE are taking place, the matter will be amicably resolved as soon as the audit is completed with an anticipated deadline of March 31.”
JSE issuer regulation director Andre Visser said though the JSE was not in a position to discuss the specifics of this issue, Tshwane was required to publish its financial information on stock exchange news service (Sens) within seven months of its financial year-end.
The Sens is an information disseminator administered by the JSE and provides access to company announcements that have a direct impact on the movement in the market.
Visser said at the end of the seven months, the JSE announced to the market instruments the municipality has listed, and if this financial information is not submitted by the end of the eighth month, which is the end of February, Tshwane could face suspension.
“The municipality is required to publish an announcement on Sens when it submits its financial information to the JSE.”
Visser said the JSE would however offer Tshwane the opportunity of making a representation on why a suspension should not be effected.
The metro recently approved financial statements for auditing.
Tshwane’s financial statement woes are nothing new.
Last year the metro failed to submit its 2022/2023 financial statement to the Auditor-General (AG) on August 31 as required, claiming this had been an audit and performance committee (APC) recommendation.
The APC recommended the submission be postponed to afford the metro sufficient time to finalise outstanding matters and ensure credible and sound financial statements.
These financial statements were eventually submitted three months late.
The city manager finally approved the financial records on November 30, 2023 indicating Tshwane was a going concern and had no intention to liquidate or curtail materially the scale of the municipality.
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