Former Abano employee arrested for fraud

A former employee of health services investor Abano Healthcare has been arrested for fraud, the company said today.

Abano said the fraud was discovered during an internal control review last November. Abano said the "long standing and trusted employee" was instantly fired after the discovery, and the police were called. The police have now arrested the employee.

Abano managing director Alan Clarke said the fraud had cost the company about $77,000 a year over the past six years.

He said as the majority of the fraud was committed in prior periods, there would be no impact on the company's recent interim result, or future results.

"Abano has now undertaken a full audit of the group's financial statements and controls, and has implemented new accounting and audit procedures to prevent such an incident happening again," he said.

He said he could not comment any further as the matter was now before the courts.

Shares in Abano last traded Friday at $1.18, having ranged between $1.06 and $2.35 over the past year.

- NZPA