Regulatory Update

RNS Number : 9514M

Barratt Developments PLC

19 October 2016

 

Immediate release                                                                                              19 October 2016

Barratt Developments PLC

Regulatory Update

This announcement contains inside information.

Barratt Developments PLC ('Barratt' or 'the Company') announces that it has today suspended Alastair Baird, its Regional Managing Director for London.  Barratt has been advised by the Metropolitan Police that Mr Baird, as well as one other former Barratt London employee, was arrested this morning. 

These arrests follow a referral in April 2016 by Barratt to the Metropolitan Police of initial findings of an internal investigation. The investigation commenced in August 2015 following an internal audit and relates to possible misconduct in the process for awarding and managing certain material & sub-contract supply contracts in the London region. The investigation also led to civil legal action which commenced in October 2015 against an employee who was dismissed in February 2016.

Following the initial findings of the internal investigation, Barratt appointed a leading accounting firm to conduct an external review of the controls relating to the tendering and procurement processes in the London business. The results of this review were reported to the Audit Committee. Following this review, Barratt has adopted additional controls. Barratt's London procurement processes differ from wider Group processes reflecting the non-standard and one-off nature of London construction projects. 
 

Based on the investigation to date, Barratt does not anticipate any material adverse financial effect.

Gary Ennis, Regional Managing Director for Southern Region, will take interim responsibility for the London and Southern Regions, supported by the London Board and other senior management of the Group. Mr Ennis joined Barratt 21 years ago.

CEO David Thomas said:

'We are committed to meeting the highest ethical standards in all aspects of our business. We have acted decisively, launching our own thorough and comprehensive investigation and referring the matter to the Metropolitan Police. 

I am confident that Gary Ennis and the London Board will ensure that Barratt London continues to deliver successfully, and remains a trusted, valued partner to its stakeholders.

We will continue to cooperate fully with the Metropolitan Police and to conduct our own investigation into these matters.  We will take whatever action is required to ensure our values and standards are upheld.'

 

For further information please contact:

Barratt Developments PLC

David Thomas, Chief Executive                          020 7299 4888

Neil Cooper, Chief Financial Officer                                 

Brunswick

Jonathan Glass/Wendel Verbeek                         020 7404 5959

 

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