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Water company hit by £15m fraud | Water company hit by £15m fraud |
(about 1 hour later) | |
An internal audit at Scottish mineral water company Campsie Spring has uncovered a £15m fraud. | An internal audit at Scottish mineral water company Campsie Spring has uncovered a £15m fraud. |
Campsie's parent company, Greencore, said the loss had been incurred through a deliberate concealment of costs rather than embezzlement. | Campsie's parent company, Greencore, said the loss had been incurred through a deliberate concealment of costs rather than embezzlement. |
It said the fraud was committed by a former financial controller who left before the problem was discovered. | It said the fraud was committed by a former financial controller who left before the problem was discovered. |
Three managers at Campsie, who had supervisory roles over the controller, have since left the company. | |
A new managing director and financial director have been appointed at Campsie Spring's headquarters in Lennoxtown, East Dunbartonshire. | A new managing director and financial director have been appointed at Campsie Spring's headquarters in Lennoxtown, East Dunbartonshire. |
A statement on the Greencore website said concerns about the accounts emerged after an internal audit on 6 June. | A statement on the Greencore website said concerns about the accounts emerged after an internal audit on 6 June. |
Financial impact | Financial impact |
A full investigation was launched three days later and a report identifying the concealment issues was presented to the board on 20 June. | A full investigation was launched three days later and a report identifying the concealment issues was presented to the board on 20 June. |
The accounts of Greencore have been severely hit by the fraud. | The accounts of Greencore have been severely hit by the fraud. |
It is understood overall operating profit in this financial year will be reduced by more than £7m. | It is understood overall operating profit in this financial year will be reduced by more than £7m. |
The company will also have to restate its accounts to reduce profits by more than £6m in 2007 and more than £3m in 2006. | The company will also have to restate its accounts to reduce profits by more than £6m in 2007 and more than £3m in 2006. |
Greencore said it was taking legal advice on whether any of the cash could be recovered. | Greencore said it was taking legal advice on whether any of the cash could be recovered. |
It is now conducting "a thorough review" of all its internal control, financial reporting and external audit processes. | It is now conducting "a thorough review" of all its internal control, financial reporting and external audit processes. |
Greencore bought the Campsie Spring in 2001. | Greencore bought the Campsie Spring in 2001. |
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