BusinessCompany NewsEngineering group faces dual accounts probe

Engineering group faces dual accounts probe

A US unit of Alstom, the French engineering group, is under an investigation by both the Securities & Exchange Commission and the FBI over alleged accounting irregularities.

Link: EC to broker deal with SEC

This follows the group admitting that Alstom Transportation, the unit in question, had ‘significantly’ understated its losses in connection with a railcar contract in New York.

As a result the group has been forced to take a €151m (£112m) charge against its 2003 results.

Alstom has only just managed to stave off bankruptcy after securing €3.4bn in state funding from the French government, a deal which has also attracted the attention of the European Commission which is set to investigate whether state aid rules were broken.

The company will shed 5,000 jobs over the next two years and is shutting down its train-making operations in the UK.

It has promised to fully comply with the SEC investigation.

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