Refcorp staggers under cash problems - Business Day : 7 September 1999
"Controversial venture capital company REF Finance and Investment Corporation (Refcorp) is staggering under major cash flow problems that could lead to its liquidation.
Former employees who did not wish to be named have said they have not been paid for more than two months and that this was just the tip of the iceberg. The company is apparently also about R4m behind on pay-as-youearn(PAYE) tax remittances to the Receiver of Revenue.
Five directors have left the company over the past couple of months for a variety of reasons which included the nonpayment of salaries.
One employee said the problem with Refcorp was not so much the listed entity but the underlying, non-listed companies that were draining the parent’s accounts, balance sheet.
The Johannesburg Stock Exchange (JSE) is believed to be investigating Refcorp and has already interrogated some former directors.
Refcorp was warned by the JSE last week for failing to submit annual financial statements within six months of the financial year-end. Refcorp deputy chairman Ivan Penny pleads that the group’s financial director had to go on maternity leave three weeks sooner than expected and that results would be released soon.
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