Harmony finances in disarray

Harmony Gold, the South African based gold mining company, has reported that its financial director has resigned with immediate effect.

The company, which saw the resignation of its Chief Executive Officer earlier this month, has appointed an interim finance director, whilst the managing director of the group’s Australasian operations has been appointed as acting CEO.

Harmony is reported to have a problem with its accounts, which those with inside knowledge attribute honest incompetence.

A problem with Harmony’s accounts was first mooted in early August of this year, when the company warned that results for the quarter to the end of June 2007 were expected to differ significantly from those in the three previous quarters.

At this point, Harmony advised shareholders that any variance could be attributed to lower production and increased costs.

The company also explained that a newly installed accounting software system had resulted in some of the March quarter’s costs being captured in the June quarter.

Installation of the new software has also been blamed for the delay in publishing the company’s quarter and year-end results which are now due on 27th August.

In the meantime the rumours continue, with suggestions that the discrepancy in Harmony’s account that is in the region of US$270 million.