Ver Angola

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Reserves in Sodiam's accounts result from transactions prior to current administration

The National Diamond Trading Company of Angola (Sodiam) explained that the audit reserves reported in the 2019 Report and Accounts result from transactions that occurred before the current administration took office.

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In a statement sent to VerAngola, Sodiam - which became a public company in 2017 - explains that it "kept the records of Sodiam SA, in which the transactions carried out under the ownership of Endiama (99 per cent) and ISEP (1 per cent) stood out".

The document also states that the financial records should have been adjusted "in accordance with the new statutes of the two public companies, in accordance with the Companies Act and the Basic Law of the Public Business Sector, as they became separate companies with their own legal personality and financial autonomy".

Indicating that it delivered its Report and Accounts to the Institute of Management of Assets and State Participation (IGAPE) within the legal deadline - on 29 May - Sodiam also points out that in 2019 it hired a "specialized financial consultancy service from Deloitte, to carry out the independent reconciliation of the open values existing in the registers of both companies".

In this regard, the statement goes on to say that an "accounting review was made and all pending transactions in each company's records were identified".

According to Sodiam, in this survey it was taken into account that "such transactions had been carried out until July 2017, the period before the current administration took office".

Sodiam indicates that it has taken a "reconciliation" initiative and has been willing to resolve "past events with the aim of removing from its report and accounts one of the recurring external audit reservations".

"Sodiam has been strongly committed to the elimination of external audit reserves related to past events, thus assuming that the decision associated with the reconciliation of balances between the two companies will be reflected in the closing of accounts for the next financial years with the approval of IGAPE", he adds.