Source: NZPA
Marac has today disclosed that an internal audit found one loan that was outside the company's internally prescribed practices.
A provision of $2.5 million will be made in the company's six month result due later this month relating to what the company described as an irregularity.
Marac is owned by Pyne Gould Corp, which said today it remained confident of meeting its full-year forecasts.
A new auditing process introduced by the new management team from October 2009 uncovered an irregularity in relation to one particular business loan that dates back to 2003.
"The circumstances behind that irregularity have only recently been ascertained, but it involves lending that is outside the company's internally prescribed practices.
"The circumstances do not appear to have involved personal gain. However, evidence points to the unauthorised lending having been suppressed," the company said.
The company is not commenting further.
It has been in the news in the past week because its chief risk officer, Grant Atkinson, was reported missing from his North Shore home. He was found at the weekend after apparently sleeping rough in a park north of Auckland.