Fortress REIT Ltd’s subcommittee of the Board of Directors is making solid progress in delivering on its mandated scope of work.
The subcommittee was set up on the 6th of September 2018, following the call from asset managers who had requested a forensic investigation into certain claims made in various reports about Fortress and the other companies in which Fortress is or was invested.
Following this, the subcommittee engaged with said asset managers to properly define their concerns and to frame a scope of work, appointing PwC to assist in a comprehensive review of these concerns. The review was broken into two parts: allegations of market manipulation and insider trading and allegations of conflicts of interest and undue related party benefits associated with historic property transactions.
Whilst the investigation completion deadline was initially targeted for the end of March, it is now expected that it will be completed towards the end of April. Once PwC’s report is made available, the subcommittee will be able to consider its findings and to make recommendations to the full board of Fortress.
Lockhart-Ross, the Subcommittee Chairman, says while PwC has substantially
completed the workstreams as detailed in the scope of work and the Subcommittee
is satisfied with progress made, it has been agreed to allow PwC further time
in order to give all parties an opportunity for further engagement, review and
comment before the report is finalised.
“As communicated to shareholders, it is the stated intention of the Fortress Board to make public the outcome of the Subcommittee’s investigation, as informed by PwC’s review and report, and as considered appropriate by the Fortress Board,” says Lockhart-Ross.
Fortress has ensured the full co-operation of all current directors and employees in the proceedings.