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One of the companies that supplies technology and engineering services for London Underground has uncovered what it calls a “sophisticated criminal scheme” that involves embezzlement and forgery in its South Korean business.
ABB, which is based in Switzerland but employs around 3,000 people in the UK, said on Wednesday that the treasurer of its South Korean subsidiary is suspected of having forged documentation and colluded with third parties in order to steal funds from the company.
The suspected individual went missing on 7 February and subsequently ABB discovered significant financial irregularities in South Korea, the company said.
ABB said that it immediately launched a full investigation and is currently working with the local police as well as Interpol.
The group also said that this embezzlement and misappropriation of funds will have an impact on its previously reported 2016 earnings report. It estimates that it will take a pre-tax charge of approximately $100m (£80m) relating to the incidents.
It confirmed, however, that the situation is limited to South Korea and said that it would publish its 2016 annual results report by 16 March at the latest.
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“ABB has a zero-tolerance approach to unethical behaviour and maintains the highest standards regarding integrity and ethical business practices,” it said in a statement.
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