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Ausdrill discovers AUD 10 million fraudulent activity

Mining News - Published on Thu, 18 Apr 2019

Image Source: The West Australian
Diversified mining services company Ausdrill Limited advised that it is undertaking investigations into fraudulent payments to a supplier which have been uncovered by the company. Through compliance with the company’s policies and procedures, Ausdrill recently discovered fraudulent payments. The company immediately undertook a preliminary internal investigation, and appointed EY to commence a thorough forensic review. As a result of the initial investigation, Ausdrill has identified that an Australian-based employee appears to have authorised and concealed payments to an unrelated invalid supplier totalling approximately AUD 10 million over eight years. The employee has been summarily dismissed and Ausdrill has reported the matter to the police. The company and its external forensic investigator will work closely with police in undertaking further investigations.

Ausdrill Managing Director Mark Norwell said that fraudulent or misleading behaviour is entirely inconsistent with Ausdrill’s principles, and behaviour of this nature will not be tolerated. He said “We are announcing this matter in accordance with our approach of full transparency and our stated objectives of enhanced governance and audit.”

Mr Norwell added “Since commencing as Managing Director one of my priorities has been on enhancing Ausdrill’s governance and operating principles, and I am satisfied that immediate action has been taken upon becoming aware of the situation. We are now completing a comprehensive review to understand how this long-term sophisticated fraud occurred and how we can further enhance Ausdrill's systems and controls.”

Ausdrill notes that this matter will have no material impact on the Company’s reported results or FY2019 guidance.

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Posted By : Rabi Wangkhem on Thu, 18 Apr 2019
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