CMA to sue WPP Scangroup
Capital Markets Authority (CMA) is taking legal action against WPP Scangroup over unapproved further extension in the delay of publication of its 2020 financial statements.
Scangroup has been accused of making announcement late and the authority has denied to approve it a further extension.
“We didn’t approve a further extension and we communicated that to them. Only that they needed to make an announcement,” said CMA.
In June, WPP-Scangroup made announcement to the public and to its shareholders revealing a delay in the publication of the 2020 financial statements.
Scan group said that it the audited financial statements for the financial year ended 31st December 2020 was expected to be published in August this year.
” Further to the public announcement made on 10th May 2021 the Board of Directors of WPP Scangroup PLC wishes to inform its shareholders and the public that the audited financial statements for the financial year ended 31st December 2020 are expected to be published on 31 st August 2021,” said WPP-Scangroup.
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The largest marketing and communication group further said, ”the audit process has taken longer than anticipated as a result of the scope of an audit by the external auditers arising from the ongoing.”
The company has delayed publication of FY2020 financial statements for the second time in row following their announcement made on June this year.
WPP-Scangroup is a subsidiary of WPP and is listed on the Nairobi Securities Exchange.
The group is operating a multi-agency model across multiple disciplines in Sub-Saharan Africa.
Earlier this year, the WPP-Scangroup Plc announced the suspension of its CEO Bharat Thakrar and Chief Financial Officer Satyabrata Das over alleged gross misconduct.
The suspension was to enable an investigation into allegations of gross misconduct and possible offences in their capacity as senior executives and employees of the company, Scangroup said in a statement.