Problems are piling up for Delta, which recently uncovered fraud and misappropriation of funds worth R46-million. The JSE has now suspended the company’s shares with immediate effect.
Trading in Delta Property Fund shares was suspended by the JSE on Tuesday, 15 December, adding more woes for a real estate company that has been hit by a multimillion-rand fraud and accounting scandal implicating former company executives.
In a Stock Exchange News Service (SENS) statement, the JSE told Delta shareholders that the company’s shares have been suspended with immediate effect, a decision the bourse has taken “in the interest of shareholders”.
Delta owns a range of office properties that are leased to government departments and entities. Delta listed on the JSE in 2012 with a share price of R9.60 but its shares are now a penny stock, dropping to 35 cents.
The suspension of Delta shares, the JSE said, follows the company’s recent decision to withdraw its annual financial statements for the year to end-February 2020 because they can no longer be relied on by shareholders. Delta’s auditor, BDO, also withdrew its audit opinion for the financial statements.
A forensic investigation into the goings-on at Delta, which was commissioned by…