The Bahamas International Securities Exchange’s (BISX) acting chief executive is set to meet with Benchmark (Bahamas) officials tomorrow to determine whether a further statement needs to be released to the market, after the company left investors ‘shocked and appalled’ by informing them that its fiscal 2003 results were materially impacted by a $1.48 million provision relating to pending litigation some eight months after the year-end period.
The revelation has provoked strong criticism from investors and market observers, who have told The Tribune they are especially concerned over the lack of timely disclosure relating to the $1.48 million provision which wiped out Benchmark (Bahamas) 2003 operating profits and accounted for almost 66 per cent or two thirds of net operating expenses.
According to the company the $1.48 million provision for ‘doubtful debts’ was made in relation to developments at its subsidiary Alliance Investment Management, during the first quarter of 2004.
Since March, the last month in that period, Benchmark (Bahamas) share price has increased from $0.72 to close at $0.85 on Friday, August 27 and several market observers are questioning whether investors would have bought at prices higher than the previous day’s close if they had been made aware of the problem at Alliance Investment Management.
In addition, BISX has also come in for criticism for what some investors see as a failure to enforce the rules regarding timely disclosure by its listed companies and failing to maintain an orderly market.
Keith Davies, BISX’s acting chief executive told The Tribune he would be meeting with Julian Brown, Benchmark (Bahamas) president, when latter returned to the Bahamas on Tuesday to discuss whether a further statement from the company to the market was necessary.
Neil Hartnell, The Tribune
