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Fraud at Red Stripe
published: Friday | November 9, 2007
Red Stripe's brewery on Spanish Town Road. The beverage company says it plans to put strong marketing support behind the brand. - File
Red Stripe's bad debts leapt close to 300 per cent in a single year, but Red Stripe now says just under half of the figure was falsely reported and wrapped up in fraud.
The beer company, listed as Desnoes and Geddes on the Jamaica Stock Exchange, said $42 million of the $85.23 million reported as bad debts at year end June 2007 - threefold the $23.82 million reported in 2006 - could not be substantiated.
The company advised the Jamaica Stock Exchange that it had written off this unexplained $42 million account receivables and conducted "a thorough internal investigation, which uncovered a fraud."
However, officials at Red Stripe were mum on how the fraud could have been perpetuated and the steps being taken to plug loopholes, when the Financial Gleaner sought comment.
The company also refused to say whether it would be reissuing its year-end results.
Head of communications at Red Stripe, Maxine Whittingham, told the Financial Gleaner that the matter was still being probed. "As the matter is under investigation much of the detail you require, I am unable to provide," she said.
"We have very robust financial and other processes in place to ensure incidents such as these do not recur. We are confident we have the right systems in place to protect the company," she said.
susan.gordon@gleanerjm.com
published: Friday | November 9, 2007
Red Stripe's brewery on Spanish Town Road. The beverage company says it plans to put strong marketing support behind the brand. - File
Red Stripe's bad debts leapt close to 300 per cent in a single year, but Red Stripe now says just under half of the figure was falsely reported and wrapped up in fraud.
The beer company, listed as Desnoes and Geddes on the Jamaica Stock Exchange, said $42 million of the $85.23 million reported as bad debts at year end June 2007 - threefold the $23.82 million reported in 2006 - could not be substantiated.
The company advised the Jamaica Stock Exchange that it had written off this unexplained $42 million account receivables and conducted "a thorough internal investigation, which uncovered a fraud."
However, officials at Red Stripe were mum on how the fraud could have been perpetuated and the steps being taken to plug loopholes, when the Financial Gleaner sought comment.
The company also refused to say whether it would be reissuing its year-end results.
Head of communications at Red Stripe, Maxine Whittingham, told the Financial Gleaner that the matter was still being probed. "As the matter is under investigation much of the detail you require, I am unable to provide," she said.
"We have very robust financial and other processes in place to ensure incidents such as these do not recur. We are confident we have the right systems in place to protect the company," she said.
susan.gordon@gleanerjm.com