Release Date: 01 October 2007
Release ID: 1078
Panalpina, one of the world’s leading suppliers of forwarding and logistic services, has suspended part of its service offering in Nigeria including its temporary importation services for oil and gas customers. The announcement is made today at Panalpina’s Investor Day in London. The suspension of these services and its potential impact on certain global agreements with oil and gas customers is expected to have an effect on the group’s Ebitda; for the current fiscal year this is estimated to be between CHF 20 to 30 million. Despite this impact, the Company has confirmed its positive outlook and financial guidance for 2007.
Panalpina's US subsidiary has been instructed by US authorities to produce documents and other information related to its business, its services to certain customers and its services in Nigeria, Kazakhstan and Saudi Arabia. The Panalpina Group has commissioned external lawyers and forensic accounting experts to conduct a thorough investigation into certain issues, in particular potentially improper payments in these countries. In view of the unclear and uncertain regulatory framework in Nigeria, the services under review will remain suspended at least until the ongoing investigations are completed in order to protect the interests of the Company and its oil and gas customers.
In addition, Panalpina is not only further strengthening its compliance programs and training on a global basis but is also reviewing the reinforcement of its worldwide compliance organization. The Company has sought close cooperation with the Basel Institute on Governance chaired by Prof. Mark Pieth, who is also Chairman of the OECD Working Group on Bribery and one of the most respected and experienced global anti-corruption experts. Monika Ribar, CEO of Panalpina, emphasized that “the Group is determined to do business in compliance with the US Foreign Corrupt Practices Act and applicable laws under all circumstances. Strict compliance with the highest ethical standards as mandated by our group-wide Code of Business Conduct is an important element of our corporate behavior and culture.”
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