Monday 3rd April, 2017
Swiss engineering company ABB has uncovered a sophisticated criminal scheme related to a significant embezzlement and misappropriation of funds in its South Korean subsidiary.
The treasurer of the South Korean subsidiary is suspected of forging documentation and colluding with third parties to steal from the company. The suspected individual went missing in February after ABB discovered significant financial irregularities.
The company launched a full investigation in South Korea, where it employs around 800 people and generated sales of $525 million in 2015.
Reported in a news statement, “ABB has a zero-tolerance approach to unethical behaviour and maintains the highest standards regarding integrity and ethical business practices.”
“The embezzlement and misappropriation of funds will have an impact on the previously reported unaudited 2016 results. Current estimate is a pre-tax charge of approximately $100 million.”
The SFO is also conducting an investigation into the activities of ABB Ltd’s UK subsidiaries.