De Le Rue Contacts Sfo As Woes Deepen

[interestrateripoff]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7987685/De-Le-Rue-contacts-SFO-as-woes-deepen.html

De La Rue also revealed that the ongoing probe will lead to a reduction in first-half pre-tax profits of at least £35m. It warned that it was "not possible" to quantify the financial impact over its full year or subsequent years. The shares fell 22½ to 681p.

It is thought that the problems at the company relate to a contract to supply paper - rather than printed notes.

In a statement yesterday, De La Rue claimed that its investigation had uncovered forged certificates relating to the quality of some of its paper.

The company said: "It has now been established that some of the company's employees have deliberately falsified certain paper specification test certificates for a limited number of customers. Banknote paper specifications have a large number of detailed parameters and the investigation has found in certain cases that a small number of them have fallen marginally short of specification."

De La Rue has reported its findings to the "relevant law enforcement agencies". The SFO confirmed that it has been contacted. A SFO spokesman said: "De La Rue came in to speak to us and passed on information. It is premature to say that a formal investigation has started. But we are monitoring the situation."

De La Rue supplies more than 150 countries with banknotes or paper to print notes. It said that all production is now within specification and that it is ready, "subject to customer agreement", to resume supply of fully compliant paper. It said that neither the physical security nor the security features in the paper had been compromised.

ON Tuesday, De La Rue also said that Mark Jeffery, the director of manufacturing, and Jonathan Garside, the director of sales, have resigned from the world's biggest banknote printer. This follows last month's resignation of chief executive James Hussey, who had worked for the firm for 25 years. Mr Hussey said at the time that he had stepped down to "take responsibility" for problems "of a serious nature" relating to paper quality issues at its printing plant in Overton, Hampshire.

The company would not elaborate on the reasons behind the resignations or Mr Jeffery and Mr Garside.

Does this mean that some notes in circulation aren't quite up to standard or that they pulled production because paper supplied wasn't up to standard?

To be fair if this is over quality lets be honest the BoE has printed £200bn+ of funny money not having actual printed paper money up to standard is hardly a major problem is it?

[OnlyMe]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7987685/De-Le-Rue-contacts-SFO-as-woes-deepen.html

Does this mean that some notes in circulation aren't quite up to standard or that they pulled production because paper supplied wasn't up to standard?

To be fair if this is over quality lets be honest the BoE has printed £200bn+ of funny money not having actual printed paper money up to standard is hardly a major problem is it?

Should be trotting down to the SFO themsleves.

Edited September 8, 2010 by OnlyMe

[interestrateripoff]

De La Rue staff faked banknote quality tests

Quite like the Indy headline on it.

[The Masked Tulip]