Oil for Food
Further to the announcement made on 13th December, 2010, The
Weir Group PLC ("Weir" or the "Company") announces that the hearing
held at the High Court in Edinburgh earlier today has
concluded.
The Company pleaded guilty to two charges of breaching UN
sanctions in connection with a number of UN sanctioned Oil for Food
programme contracts awarded between 2000 and 2002.
Following the guilty plea, Weir has been subject to a
confiscation order in the sum of £13,945,962. In addition it has
been fined £3 million.
These financial penalties will be paid before the year end and
will be treated as an exceptional item after taking account of
approximately £5 million of provisions.
Current trading remains strong in line with the Company's update
last month and our expectations for the full year remain
unchanged.
Lord Smith of Kelvin, Chairman of Weir commented: "What happened
back in 2001 was wrong and we accept full responsibility. Today's
decision finally draws a line under the Crown Office's Oil-for-Food
investigation which we believe is in the best interests of
shareholders.
"Since 2001 Weir has been transformed. We have a different board
and a different management team all of whom are committed to doing
business at all times in an ethical manner. Today we have in place
robust ethical policies and procedures and operate a zero tolerance
approach to any behaviour that contravenes them.
"The board regards as an absolute priority ensuring the Group
operates with integrity. I am confident that we have in place the
right culture and the necessary policies and procedures to ensure
that it does."
Enquiries:
The Weir Group PLC 0141 308 3726
Helen Walker
Maitland 020 7379 5151
Suzanne Bartch
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