Othelo wrote:1. So all those serious shareholders didnot have seats on the Board and Board committees? What have they been presenting to their masters?
2. Opus Dei says they have had this issue since October 2015. How did the Board/Major shareholders allow the Chair and CEO to still present falsified reports for 2015 ...... 6 months down the line.
3. Let Chase bank accept their own weaknsesses and mistakes and learn from it, instead of blaming social media.
Let me try to chew it for you. you = shareholder
Assume you have a kiosk where you have employed someone to run it and then you take audits at the end of the week.
You have allowed your employee to take and give credit as long as its to a certain limit and given time. If your employee takes more than half a bundle of unga, mind you everyone is still buying from you and you are getting more customers, would you immediately know, or this would become visible after you take an audit of books vs inventory?
The directors and management worked together to hide loans given to them from the financials, hence the first set of results. The auditor looked and the books and they were not adding up hence the "qualified opinion" meaning that financial statements are, in a limited way, not in accordance with generally accepted accounting principles.
The auditor has concerns about the company, the valuation of certain items on the balance sheet or some unreported pending liabilities.
At no point did the auditor say the bank was collapsing, infact when the media asked the CBK gov they were told that there was nothing to worry, but no one could trust him, the damage was done and wanjiku ran to withdraw.
No bank in Kenya can survive after experiencing an 8BN withdrawal in hours. Simply because, when you bank your money, its given to someone else as a loan (not liquid)
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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