ABB Un­cov­ers Fraud at South Korean Sub­sidiary

The Economic Times - - Around The World -

Zurich: Swiss-Swedish en­gi­neer­ing gi­ant ABB said Wed­nes­day that it had un­cov­ered sig­nif­i­cant em­bez­zle­ment at its South Korean sub­sidiary, which it warned would heav­ily im­pact its 2016 earn­ings. The com­pany said it had dis­cov­ered “a so­phis­ti­cated crim­i­nal scheme re­lated to a sig­nif­i­cant em­bez­zle­ment and mis­ap­pro­pri­a­tion of funds” at the South Korean unit. “ABB has ini­ti­ated mit­i­gat­ing ac­tions to re­duce the im­pact of this crim­i­nal ac­tiv­ity on its re­sults sig­nif­i­cantly in­clud­ing re­cov­ery of mis­ap­pro­pri­ated funds, le­gal claims and in­sur­ances,” the com­pany said in a state­ment. ABB said the trea­surer at its South Korean sub­sidiary had gone miss­ing on Fe­bru­ary 7, and the com­pany had sub­se­quently dis­cov­ered the in­di­vid­ual had been “forg­ing doc­u­men­ta­tion and col­lud­ing with third par­ties to steal from the com­pany.” AFP

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