Internal auditor finds no wrongdoing at Royal

Royal Group Technologies announced that an independent forensic auditor has completed its investigation of transactions between the company and the Royal St. Kitts Beach resort development, a real estate project which is majority-owned by Vic de Zen, Royal’s controlling shareholder and chairman. The auditor, Kroll Lindquist Avey, has delivered a report to a special committee of Royal Group’s Board of Directors.
In the report, according to a press release, Kroll concludes it found no evidence of improper financial conduct involving Royal Group employees. Although Kroll found no evidence of conduct or actions calculated to improperly shift costs to the company from the St. Kitts project, the Kroll investigation did discover a number of factors “which did provide such an opportunity.”
Kroll has advised the Special Committee that further investigation is not warranted. The Ontario Securities Commission is conducting its own investigation into the matter.