Huge impairments drag BancABC into red

Mudavanhu
Mudavanhu

ABC Holdings recorded an attributable loss of P438 million in 2014 primarily as impairments nearly doubled to P650 million from P328 million in 2013.

Addressing the media on Tuesday, acting group Chief Executive Officer (CEO), Blessing Mudavanhu, said the significant jump in impairments was a result of efforts to clean up the balance sheet after the banking group was in August last year acquired by London Stock Exchange (LSE) listed Atlas Mara.

“Despite the loss, the groups’ operations still have a high economic value due to a sound balance sheet. The loss was largely due to increased impairments as well as reduced margins compared to the prior year. The new shareholders would want to start on clean slate,” he said.

Editor's Comment
The corrupt must be punished

The findings reveal a disturbing pattern of misconduct and lack of transparency that cannot be ignored.The Tribunal, led by Judge President Justice Kabelo Lebotse, has rightly condemned the Ministry for its eyebrow raising conduct in awarding a P1.8 billion water tender to China Civil Engineering Construction Corporation (Pty) Ltd and Zhong Gan Engineering & Construction Corporation (Pty) Ltd.The award was made despite alleged clear evidence that...

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