Auditor quits over inquiry disclosure
An auditor hired by scandal-ridden Real Gold Mining to conduct an internal inquiry quit after less than a month because he wanted the firm to delay publishing its interim results until his investigation was completed, the company disclosed yesterday.
Real Gold told the Hong Kong stock exchange that Wan Kam To, a former PricewaterhouseCoopers partner, and its board 'were unable to agree on whether the internal investigations or the release of the interim results' should come first.
The Inner Mongolia-based firm, which had funnelled about HK$1.5 billion to founder Wu Ruilin, had announced Wan's departure on August 19 but did not provide reasons.
Real Gold said it had wanted to announce its interim results before August 31 to 'dispel market speculation as to the financial well-being of the company'.
Wan, who could not be contacted, was the head of Real Gold's audit committee and special investigation committee. He is one of several non-executives to have left the company since the start of its troubles.
On May 27, the company suspended trading in its shares after the South China Morning Post reported that the financial accounts for 2009 that Real Gold filed with the mainland authorities did not match the accounts it filed with the Hong Kong stock exchange.
Wu, also Real Gold's majority shareholder, had pledged the company's entire assets to a mainland bank to secure personal loans.
Earlier this week, Real Gold said it lent Wu HK$955 million between February and April, without informing investors. The firm also admitted that it bought some phosphorous mines in Mongolia from Wu for an additional HK$520 million in the first half of this year.
The company had not previously disclosed the transaction nor had obtained investors' approval.
Wu, a telecoms entrepreneur who is not on the company's board, has repaid most of the loan.
