April 30 (Reuters) - Clear Channel Outdoor Holdings said on Monday an investigation into misappropriation of funds by several employees of its Clear Media Limited found that three unauthorized bank accounts were opened in the partly-owned unit’s name.
Clear Media earlier this year said certain employees had “illegally misappropriated” about 76 million yuan ($12 million)of the outdoor advertising company’s funds.
The latest findings have been referred to the police in China and the company had notified the United States Securities and Exchange Commission and the Department of Justice, Clear Channel said on Monday.
Clear Channel said the misappropriation of $10.2 million over several years resulted in discrepancies between actual cash balances and cash amounts included in its accounting records.
Following the assessment, the company has determined that there was a material weakness in internal control over financial reporting with respect to Clear Media.
Clear Media accounted for 9.8 percent of the company’s net revenue and 9.9 percent of its consolidated total assets in 2017.
Any liability from the incident is not material to the consolidated financial statements of Clear Channel, the company said. ($1 = 6.33 Chinese yuan renminbi)
Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila