PwC Hit by $40 Million Lawsuit From Botswana Supermarket Chain
- Auditor didn’t sign off on Choppies financials, hurting shares
- Choppies CEO reinstated after probe found no malpractice
Choppies branded long-life shopping bags hang on display inside a Choppies supermarket.
Photographer: Waldo Swiegers/Bloomberg
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Two senior executives at Botswana supermarket chain Choppies Enterprises Ltd. are suing former auditors PwC for 653 million rand ($40 million) for not signing off on the company’s 2018 accounts, which led to a share price collapse.
Choppies Chief Executive Officer Ramachandran Ottapathu and Executive Director Ismail Farouk allege that PwC didn’t complete the audit in part to pressure the company to hire PwC director Rudi Binedell as head of finance, according to a statement issued on behalf of the directors. The duo filed the lawsuit at the High Court in Gaborone, Botswana’s capital.