TP Note: ...and here's another from the Business...

TP Note: ...and here's another from the Business Spectator:-

Source: www.businessspectator.com.au

Centro warns on accounts
11:03 AM, 17 May 2008

Centro Properties Group has been forced to admit that its accounts cannot be trusted, reports The Australian Financial Review.

In the first-quarter accounts for its Centro NP LLC subsidiary, filed with the US Securities and Exchange Commission, Centro admits that its own public statements about its financial position were unreliable.

"We identified material weaknesses in connection with our internal controls over financial reporting that, unless remedied, could have a material adverse effect on our external financial reporting," the report said.

"With a failure to achieve and maintain effective internal control over financial reporting, there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis."

The debt-laden group has said it will defend a class action brought against it by shareholders over allegedly not disclosing the true state of its finances.

The class action has been brought against Centro and CPT Manager Ltd - the responsible entity (RE) for Centro Property Trust - in the Federal Court in Melbourne.

A directions hearing before Justice Ray Finkelstein has been set down for May 27.

"Centro will vigorously defend the proceeding in the interests of its securityholders," Centro previously said in a statement.

Centro's troubles became apparent last December, when its shares tumbled 80 per cent after it announced it was struggling with the debt on its 800-strong property portfolio spanning Australia, New Zealand and the US.


Ends.

Cheers, Pie :-)