AMEC to start accounting review after SFO's £4.9m hit

AMEC, the international engineering giant has agreed to pay a £4.9m Civil Recovery Order to the Serious Fraud Office and review its accounting policies after the watchdog ruled it had failed to keep accurate records.

In late 2007, the FTSE 100 company uncovered "certain irregular receipts received between November 2005 and early 2007, amounting to some $9m," AMEC said, yesterday.

AMEC said it promptly appointed external advisors to carry out an investigation and self-reported the findings to the appropriate authorities, including the Serious Fraud Office in March 2008.

"A subsequent SFO investigation has determined that no proceedings should be commenced against AMEC or any of its associated group companies," AMEC said.

"The SFO has concluded, however, that there was a failure to keep accurate records as required by the companies legislation and that this matter is suitable for civil resolution," AMEC added.

"Following detection of these irregularities AMEC is improving its ethics, compliance
and accounting standards," the SFO said.

"As part of the settlement AMEC has agreed to appoint an independent consultant to review these improvements and report their findings to the SFO," the fraud watchdog added.