Absa Group Ltd. (ASA) placed an executive on special leave and started an internal investigation into circumstances that have led it to increase provisions for bad debt, the Business Times reported, citing David Hodnett, the lender’s financial director.
The unidentified executive was suspended as a precautionary measure and while there was no suggestion of wrongdoing the probe would be easier to conduct without him being present, Hodnett said, according to the Johannesburg-based newspaper.
Absa confirmed Hodnett’s comments.
“We have nothing further to add,” the Johannesburg-based company said in an e-mailed reply to questions. “We are in a closed period and therefore cannot comment until after the publication of our financial results on July 27.”
To contact the reporter on this story: Mike Cohen in Cape Town at firstname.lastname@example.org;
To contact the editor responsible for this story: Andrew J. Barden at email@example.com.