Panalpina investigates business practices in certain countries
07/24/2007
Some of Panalpina’s customers have announced to US authorities the review of their business practices related to Nigeria. Panalpina has decided to conduct its own internal investigations.
Panalpina’s US subsidiary has been requested by US authorities to produce documents related to the provision of its services to Nigeria for a specific customer and its contractor. This request was triggered by the plea agreement of such customer with the US authorities for allegedly making improper payments to Nigerian officials to secure preferential customs treatment.
Recently, several other customers have announced to US authorities the review of their practices related to Nigerian importation procedures. In the meantime US authorities have extended the scope of their review to Panalpina’s documents related to services into Nigeria, Kazakhstan and Saudi Arabia for a limited number of customers.
As a consequence Panalpina has initiated its own internal investigations. The international law firm Baker & McKenzie has been retained and a forensic accounting expert company has been appointed to support the internal fact-finding process. The outcome of such investigation will be reported to Panalpina’s Audit Committee. The Audit Committee would be prepared to take immediate measures to the extent required.
As the proceeding is at an early stage, no conclusions can be drawn at this time as to what remedies US authorities may seek from customers respectively Panalpina.
Panalpina’s Board of Directors and Executive Board are committed to ensure adherence to its Code of Business Conduct, which prohibits improper payments in all countries in which the Group offers its services.
The Panalpina Group
The Panalpina Group is one of the world's leading suppliers of forwarding and logistics services, specializing in intercontinental air freight and ocean freight shipments and associated supply chain management solutions. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding solutions tailored to its customers' individual needs. The Panalpina Group operates a close-knit network with some 500 branches in more than 80 countries. In a further 60 countries, it cooperates closely with partner companies. Panalpina employs some 14 000 people worldwide.
