Azlan comes clean over internal woes
Chairman Morgans hints that sale of distributor is a possibility after admitting stock and rebate problems at the company
Azlan chairman Barrie Morgans has given the first clear indication that the ailing distributor could be sold off after he admitted the full extent of the distributor?s problems.
In an exclusive interview with PC Dealer, Morgans revealed the problems that have dogged the distributor since its shares were suspended on 13 June. Although the business had a lot of advantages, said Morgans, ?it doesn?t prevent people ringing me up and asking ? I will take their name and phone number?.
The indication comes in the wake of the resignations of chairman Mike Brooke and chief executive Christian Martin last week.
Morgans said he believed that Martin had little knowledge of the ?unresolved accounting issues? and was ?shook up at the events that unfolded?. He added: ?Chris felt it was best for all parties that he resigned. He deeply regrets what has gone on, but the fact is that the buck stops with the chief executive.?
According to Morgans, who has been made chairman following Brooke?s departure, the investigation into Azlan?s internal problems occurred as a result of a major breakdown in management control. The investigation revealed stock problems were at the heart of Azlan?s downfall. ?Rebates are part of this process and we failed to control stock properly,? said Morgans.
Commenting on his intentions to tune up Azlan?s structure and cut down on expenses, Morgans conceded: ?I will not be replacing the people that have already left as I am trimming down the management.?
The internal investigation has involved interviewing people Morgans believed to be culpable for Azlan?s financial troubles. He added it was likely that other staff would be leaving the company as a result.
Following speculation about his future at Azlan, UK MD James Maunder denied suggestions that he would be the next in line to leave. ?I have absolutely no plans to leave,? he said. ?I?m here as long as Azlan wants me.?
The suspension of Azlan?s shares is due to be lifted at the end of September.