Breaking News on Industrial Baking & Snacks

Trends > Emerging Markets

ABB launches investigation after misappropriation of funds

Post a comment

By Jenny Eagle+

Last updated on 22-Feb-2017 at 14:30 GMT2017-02-22T14:30:12Z

ABB makes robots for the snack industry, among others. Pic: ABB
ABB makes robots for the snack industry, among others. Pic: ABB

ABB has launched an investigation after its former treasurer allegedly stole money from its South Korean subsidiary.

The suspected individual went missing on February 7, 2017 and ABB is working with the local police and Interpol to solve what it claims is a sophisticated criminal scheme related to a significant embezzlement and misappropriation of funds.

Forging documents

In a statement, the company said: “The treasurer of the South Korean subsidiary is suspected of forging documentation and colluding with third parties to steal from the company.

The company immediately launched a full investigation in South Korea engaging independent forensic and legal specialists and collaborating with law enforcement authorities. This embezzlement and misappropriation of funds will have an impact on the previously reported unaudited 2016 results.

Current estimate is a pre-tax charge of approx. $100 million. 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.”

2016 Annual Report

Antonio Ligi, media relations, ABB Group, told BakeryandSnacks, the company immediately initiated full-fledged cooperation with the relevant authorities on a local and global level.

The progress of the investigation will enable us to disclose additional facts. On the financial front, we are finalizing the adjustments to the financial statements which we will review with our external auditors and we will publish our annual report. 

“We do not anticipate any impact to the day to day operations. We’re committed to serving our customers, running our operations and business continuity is ensured.”

ABB has checked and reconfirmed the balances of its global bank accounts and can confirm this situation is limited to South Korea.

ABB says it has a zero-tolerance approach to unethical behavior and maintains the highest standards regarding integrity and ethical business practices.

As a consequence of the ongoing investigation, ABB will publish its 2016 Annual Report latest by March 16, 2017.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Related suppliers

Key Industry Events


Access all events listing

Our events, Shows & Conferences...