Re Contract

RNS Number : 1289F

Balfour Beatty PLC

06 October 2008

 



6 October 2008

BALFOUR BEATTY REACHES FULL SETTLEMENT OF

ISSUES RELATING TO BIBLIOTHECA ALEXANDRINA PROJECT

In early 2005, Balfour Beatty, the international engineering, construction, services and investment Group, identified certain payment irregularities, in respect of the execution of its joint venture contract to build the Bibliotheca Alexandrina in Egypt. The contract to build the Bibliotheca was entered into in 1996 and was completed in 2001 by a Balfour Beatty business which was discontinued over seven years ago. The project was delivered to the highest international construction standards and to the customer's complete satisfaction.

Balfour Beatty carried out its own fully documented internal investigation of the irregularities identified and self-reported the findings to the appropriate authorities, including the Serious Fraud Office (SFO), in April 2005 for further investigation. The SFO investigation has determined that there was a failure to keep accurate records within a subsidiary of Balfour Beatty in respect of the contract, that no proceedings should be commenced against any individual or corporate body arising out of the investigation and has concluded that the matter is suitable for civil resolution. 

There is no suggestion of any improper overall commercial advantage accruing to the company nor any financial advantage being gained by any individual employee and no adjustment is required to any Balfour Beatty financial statements.

To add to its existing policies, communication and training in respect of ethical matters, the Group has instigated a process specifically designed to eradicate the potential for any repeat occurrence. 

Balfour Beatty has agreed to pay a sum of £2.25 million in respect of a Civil Recovery Order, plus a contribution towards the costs of the Civil Recovery Order proceedings in full and total settlement of this matter. This agreement expressly recognises that Balfour Beatty acted promptly and responsibly in connection with the matter, that Balfour Beatty has co-operated with the SFO throughout the investigation, and that appropriate steps have been taken to ensure no recurrence could take place in the future.

Balfour Beatty's policy is that all of its business should be conducted ethically and the highest standards of integrity are explicitly required from all of its businesses and employees.  

-ENDS-

Enquiries to:    

Tim Sharp

Tel: [phone]

www.balfourbeatty.com

Notes to Editors:

Balfour Beatty is a world-class engineering, construction, services and investment business, well-positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer needs.

 

END

 

 

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