Imtech publishes Shareholder Report on investigations
Royal Imtech N.V. (Imtech) announced today the publication of its Shareholder Report regarding the investigations and findings in, amongst others, Germany and Poland as well as measures taken throughout the entire organization. The Shareholder Report provides a comprehensive overview of the irregularities, their impact and related corrective actions. The Shareholder Report will be discussed with shareholders during the Annual General Meeting of Imtech to be held on 28 June, 2013.
The investigations revealed a number of important findings:
- Primary cause for substantial loss which Royal Imtech suffered, are fraudulent actions in Poland and Germany
- Imtech’s business controls were not sufficient and have not worked adequately
- Corporate culture suboptimal and too much focused on good news only
The investigations and other actions described in the report were triggered early February following indications about possible irregularities with a project in Poland. This was a catalyst for other events, resulting in a write off of EUR 370 million on projects carried out by Imtech Germany and Imtech Poland. The findings of the investigations are described extensively in the today published report.
The report also includes the several Corrective Actions that Imtech implemented, based on the findings and conclusions. These actions include management changes in Germany and Poland, the filing of criminal complaints in Poland and Germany, restoring the Polish operation and other disciplinary measures. Furthermore the company implemented enhanced Business Controls, as well as an improved governance, risk and compliance framework. Next to this, new targets and related remunerations policies have been set.
The publication of the report with findings is also an important Corrective Action. Imtech’s Board of Management and Supervisory Board have a clear motivation for the publication:
- Reporting in a transparent manner to shareholders about the events
- Provide the market and all stakeholders but in particular customers, suppliers and partners the assurance that it will never happen again and that Imtech will operate at the highest business ethics standards.
- Provide Imtech’s employees full disclosure about what happened and how to deal with it
- Bring a dark chapter to close and start rebuilding the companies reputation
Gerard van de Aast, CEO of Imtech: “The release of the Shareholder Report is an important yet sad milestone for Imtech. It brings to a close a difficult and distracting period. The findings as reported in the Shareholder Report are very serious. The new Board of Management strongly rejects unethical and undesirable business behavior. Imtech does apologize to its shareholders, customers, suppliers and partners. Also our employees have been hard hit by the fraudulent actions from some former colleagues. To them we apologize as well. The Shareholder Report has been written with full transparency, since we believe that healing from this dark chapter in Imtech’s history must start with openness about the investigations and findings. It goes without saying that in the future this kind of conduct will not be tolerated. The corrective actions that have been and are being taken are in our view a clear and necessary response to what happened. Looking forward, Imtech will have to rebuild its reputation and regain the trust from all stakeholders. We will do so with vigor while adhering to the highest business ethics standards.”