STOCKHOLM, Sweden, Jan. 31, 2002 (PRIMEZONE) -- NCC has commissioned independent legal experts to investigate the Swedish Competition Authority's suspicions regarding NCC's participation in an illegal cartel within the asphalt industry. NCC has concluded that the suspicions are correct and takes a very serious view of the matter. As a direct consequence, about ten managers have been dismissed. NCC is also initiating a comprehensive action program and invite the Swedish Competition Authority to participate in the educational part.
In April 2001, NCC reported seven managers employed in the Group's paving operations to the police authorities on suspicion of financial irregularities affecting NCC. These managers were subsequently prosecuted on charges of serious fraud. One of the managers involved attempted to persuade NCC to withdraw its charges, threatening to otherwise inform the Swedish Competition Authority that NCC had broken the competition law - a crime that had apparently arisen as a result of this same person's deliberate actions in direct contravention of NCC's internal rules. NCC did not yield to this threat.
On October 24, 2001, when the Competition Authority initiated investigations against NCC, among other parties, NCC's executive management received detailed information about the suspicions through the summons application submitted by the Authority to the district court. NCC then commissioned an independent legal inquiry into the matter.
The independent inquiry showed that the complaints were substantially correct in four of the six cases. In one case, the investigators consider the suspicions to be unfounded. In another case, it is not possible to verify the facts because the persons concerned are no longer employed by NCC. The inquiry also showed that illicit cooperation had occurred in several cases in addition to those brought to light by the Competition Authority.
"There is no defense for this," says Alf Goransson, President and Chief Executive Officer of NCC. "Laws are made to be followed. My job is to increase NCC's competitiveness. In efforts to achieve this aim, we must compete, not attempt to negate competition. And we shall compete on the basis of fair practice. We are now taking forceful action to ensure that a similar situation will never arise again."
The independent inquiry was presented to the Competition Authority today. At the same time, NCC announced a comprehensive action program designed to ensure that NCC managers at all levels adhere to prevailing rules and regulations. The program includes the following features:
-- A wide-ranging internal training program in corporate culture,
ethical behavior and business ethics.
-- Mandatory and expanded training in competition legislation for
managers and other relevant employees.
-- Amendments to NCC's existing rules and regulations in the
competition area, in order to incorporate a compliance program
including binding provisions for all units in the Group, one of
which will require the immediate reporting of any suspected
violations of the Competition Act.
"For many years, NCC has issued a handbook that shows how we must behave in respect of competition matters. Obviously this has not be sufficient. We are therefore strengthening our procedures," says President and Chief Executive Officer Alf Goransson.
All of NCC's press releases are available on www.ncc.se
NCC is one of the leading construction and property development companies in the Nordic region. NCC has annual sales of approximately SEK 45 billion, with 27,000 employees.
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