Mainfreight uncovers alleged misappropriation

Profit rose to $87.6 million, or 87.65 cents a share, in the 12 months ended March 31, from $82.4 million, or 82.58 cents.

Mainfreight, the transport and logistics group, said it has uncovered misappropriation by a credit controller at its Daily Freight (1994) subsidiary and referred the matter to the police.

The amount involved was not material to Mainfreight, according to a brief statement to the NZX from managing director Don Braid.

Braid said he could not say how much money was involved or when the alleged misappropriation took place, other than "over a period of time".

The alleged offending occurred in Auckland, he said.

The matter was uncovered during an internal examination of the New Zealand freight forwarding business.

"Evidence gathered in the course of the investigation has been passed to the NZ Police and prosecution is under way," the company said. "The matter is sub judice."

Daily Freight's control systems have since been reviewed and tightened, it said.

A credit controller is the person in charge of collecting outstanding invoices for a company.

Shares of Mainfreight fell 0.4 per cent to $11.55.