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- PwC has resigned as external auditor of Oceana because of a "strained" relationship with the company, and a lack of transparent communication with the board.
- At the last annual general meeting, investors holding 38% of Oceana shares voted against retained PwC as the group’s auditors.
- Previously, PwC raised concerns about the dating of signatures on an internal document relating to an insurance claim that was paid out to Oceana.
PwC has resigned as external auditor of Oceana because of a "strained" relationship with the company, and a lack of transparent communication with the board, amid a tumultuous period at the troubled fisheries and logistics group.
At the last annual general meeting, shareholders holding 38% of Oceana's shares voted against retaining PwC as the group’s auditors. Oceana was meant to consult with shareholders on the reappointment of PwC on Monday, but instead announced on the day that PwC had resigned.
"Shareholders are now advised that late afternoon, Friday (…) PwC resigned as auditors of the group with immediate effect in respect of the audit of the financial year ending September 2022."
Oceana said PwC said this was "due to their assessment of significant doubt as to whether there was objective and transparent communication between the board and PwC given the strained relationship, which they assert constituted a significant impairment of their independence."
Oceana was looking at alternatives to PwC, and discussions with another of the big four auditing firms were progressing.
"The company is confident that it will be able to appoint new auditors within the required 40 business days."
READ | Oceana shareholders express low confidence in auditors PwC
Monday’s meeting will still go ahead in order to provide shareholders a chance to engage with Oceana’s audit committee.
Oceana owns canned fish brand Lucky Star and also has a presence in other global markets where it sells fishmeal, fish oil and fish. It also owns a logistics company specialising in cold storage and transport of products such as fish, fruit and vegetables, poultry and meat.
The company delayed the publication of its financial results for the year-end September 2021 several times. That JSE previously warned that the company's listing would be suspended or removed if it didn't submit its annual report.
The delay of its results was due to two accounting issues. The first concerns the accounting treatment of the group’s 25% shareholding in New Orleans-based company Westbank Fishing. A whistleblower raised concerns about the treatment, which was investigated by ENSafrica. A preliminary probe found no evidence of "fraud, misappropriation or loss of funds or management of override of controls arising from any of the matters raised".
Secondly, PwC raised concerns about the dating of signatures on an internal document relating to a $4 million insurance claim that was paid out to Oceana. The auditors were concerned whether the claim should have been recognised in the previous financial year.
READ | Lucky Star owner announces yet another top-level resignation
Chief financial officer Hajra Karrim was suspended in February, and CEO Imran Soomra resigned soon after that. Company secretary Adela Fortune also later left the company.
Oceana previously said Soomra’s conduct was being probed in order "to deal with certain of the matters which related to the CEO’s conduct and which had been investigated or arose during the investigations conducted by ENSafrica Forensics".
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