35 million GDP loss over bank note scandal
(9 September 2010 – UK) De La Rue, a British banknote manufacturer, has called in the Serious Fraud Office (SFO) after revelations that staff ‘deliberately falsified’ paper specification test certificates.
The scandal was initially uncovered in July when the firm suspended productions at a Hampshire plant saying there was ‘quality and production issues’.
These issues have now been revealed and could cost the largest banknote printing company in the world an estimated £35 million (A$56 million).
The company’s chief executive officer James Hussey quit last month as the scandal was unfolding, saying that he had to take responsibility for the problem.
De la Rue has now made a statement saying that certain paper specification test certificates for a limited number of customers have been falsified deliberately by some employees.
Banknote paper specifications have a large number of detailed parameters and the investigation has found in certain cases that a small number of them have fallen marginally short of specification, the statement added.
The SFO has now been brought in to investigate the issue which is expected to hit De La Rue's first half pre-tax profit by at least £35 million.
The firm’s executive chairman Nicholas Brookes said that the behaviour of some of our employees in this matter was totally unacceptable and contravened De La Rue's rigorous standards.
The firm does not tolerate such behaviour and appropriate disciplinary action is being taken, Mr Brookes added.
These issues have now been revealed and could cost the largest banknote printing company in the world an estimated £35 million (A$56 million).
The company’s chief executive officer James Hussey quit last month as the scandal was unfolding, saying that he had to take responsibility for the problem.
De la Rue has now made a statement saying that certain paper specification test certificates for a limited number of customers have been falsified deliberately by some employees.
Banknote paper specifications have a large number of detailed parameters and the investigation has found in certain cases that a small number of them have fallen marginally short of specification, the statement added.
The SFO has now been brought in to investigate the issue which is expected to hit De La Rue's first half pre-tax profit by at least £35 million.
The firm’s executive chairman Nicholas Brookes said that the behaviour of some of our employees in this matter was totally unacceptable and contravened De La Rue's rigorous standards.
The firm does not tolerate such behaviour and appropriate disciplinary action is being taken, Mr Brookes added.
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