Sekunjalo is aware that confidential information surrounding the mutual parting of ways between The Sekunjalo Group and its auditors, BDO, has been leaked to the media.
This is before any of the listed companies in which Sekunjalo has a majority stake, could inform their stakeholders via SENS. This has created a distortion of the facts that we would like to immediately clarify. The relationship between Sekunjalo and BDO is and remains, excellent. However, Sekunjalo has an increased requirement for rotation of auditors and audit partners, as well as a requirement for transformation and involvement of more black audit partners and audit firms.
Sekunjalo cannot speak for the listed companies under its group umbrella but, as the majority shareholder, Sekunjalo had already resolved that it was not going to support the re-appointment of BDO as auditors to the listed entities in which it has a stake. The board had determined that it is duty bound to seek opportunities for black professionals and black firms, especially ahead of the Mandatory Audit Firm Rotation due to come into effect on 1 April 2023. It is for this reason that Sekunjalo had earlier drafted a letter to the Chairman of BDO and met with the Managing Partner of BDO today in Cape Town to give BDO fair notice.
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