A former staff member of AYO Technology Solutions has blown the whistle on his former employer, claiming in declarations to the JSE and the Financial Sector Conduct Authority (FSCA) that some aspects of the company’s 2021 interim financial statements were inaccurate.

AYO denies the claim, according to a Daily Maverick report.

The whistle-blower, Zama Mlaba, a former member of the finance staff at AYO, disclosed that staff payroll costs for five consecutive months – September 2020 to January 2021 – were not recorded by the finance department in any of those reporting months, which would have had the effect of increasing the stated income announced for the interim period to February 2021.

He was instructed in the last week of September by the finance executive to include these in August, after a report sent by the CFO.

The effect of the change was not huge: Mlaba estimates that it would result, in total, to a change of about R15m against a turnover for the period of R859m. However, the company had just swung into a loss-making position and was under pressure to demonstrate that losses were sustainable.

His claims are backed up by documentary evidence, which Mlaba has handed over to the JSE and the FSCA.

Jeni Kostova, AYO group executive marketing, described the claim as ‘absurd’ and said AYO could confirm that Mlaba had referred a dispute to the CCMA for unfair dismissal and discrimination.

‘AYO is not aware of any “misstatement” nor “irregularity” in its financials nor of any such investigation by the JSE or the FSCA.’

The DM notes Mlaba was dismissed after objecting to making the changes and is currently contesting his retrenchment at the CCMA.

The case has yet to be heard.

Full Daily Maverick report