Sir Robert Smith, Weir chairman and author of the audit committee report that forms part of the Combined Code on corporate governance, said: ‘We undertook a thorough review of these contracts and although the investigation has not yet concluded, the board considered it essential that we make public the current information. It is most regrettable that previous statements, whilst made in good faith, were incorrect.
‘The problem dates back to 2000. Shareholders can be assured that the board will take whatever actions are necessary to address quickly and effectively all concerns identified by the investigations.’
Weir undertook an internal review into all contracts undertaken through its overseas business, Wesco Dubai.
At the same time an external investigation was undertaken by independent legal advisers Herbert Smith. While this investigation has not been concluded, it discovered that trading terms had been amended at the request of ‘certain Iraqi customers’, resulting in the prices payable on subsequent Oil-for-Food programme contracts being uplifted by an aggregate of £4.2m.
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