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.