External investigation reveals errors in financial reporting

28 August 2017

Buma/Stemra CEO Wim van Limpt announces measures

According to an external investigation announced earlier this year by Wim van Limpt, BUMA/Stemra CEO since June 2016, the board was not adequately informed about important financial decisions and provisions as well as reserves were set aside incorrectly. Van Limpt is now taking measures to correct these mistakes.

In the process of instituting organisational improvements, Van Limpt ran into a number of questions about the annual accounts and financial reporting that could not be answered internally. In consultation with the board, it was decided to engage an external party to conduct an investigation. The findings have revealed a failure to comply with the accounting rules, which impeded insight into the cost structure and, as has now become apparent, caused provisions and reserves to be set aside incorrectly.

Yesterday, Van Limpt informed the Buma/Stemra board of the findings of the investigation, conducted by law firm NautaDutilh and, at its behest, accounting firm BDO. The employees, members and supervisory committee were informed today. Van Limpt: “I regret the results of the investigation but am relieved that questions have now been answered and measures can be taken to fix the mistakes. With the additional measures and the already initiated organisational improvements, nothing stands in the way of becoming the kind of organisation that should be expected of us.”

The investigation included an analysis of the financial records and interviews with those involved. The report contains a number of findings and recommendations that fit in with the ongoing improvement process initiated last year by Van Limpt. Van Limpt: “It gives us an additional incentive to accelerate the implementation of the restructuring plans and make Buma/Stemra a more market-oriented, viable and transparent organisation. In addition, a comprehensive innovation process has been launched that will equip us with high-quality, transparent and automated data processing. The annual accounts will be drawn up on the basis of the findings and presented to members for approval at an extra general members’ meeting to be held soon.”