ABB Ltd
19 April 2005
ABB reports irregularities at US software unit
Zurich, Switzerland, April 19, 2005 - ABB said today it has made a voluntary
disclosure to the U.S. Department of Justice (DoJ) and the Securities and
Exchange Commission (SEC) of certain suspect payments amounting to some $560,000
made by employees of ABB network management, a specialized US-based subsidiary.
The suspect payments became apparent during an internal investigation following
the dismissal of two managers from the company in mid-2004. The payments were
made to intermediaries in Latin America and in the Middle East in connection
with the company's business, which is control software for utility customers.
Fred Kindle, President and CEO of ABB, commenting on the disclosure said: 'We
have a zero tolerance policy on compliance and business ethics issues, take
action quickly and report fully to underline our commitment to transparency and
proper business conduct. Our enhanced compliance procedures helped us identify
and address this issue.'
Based in Sugarland, Texas, the company was acquired in January 1999, and employs
about 150 people.
As is common practice in such cases, ABB will continue its investigation and
compliance review of this business. ABB intends to cooperate fully with the DoJ
and SEC review of this matter.
ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 102,000 people.
This information is provided by RNS
The company news service from the London Stock Exchange
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