Charter plc Statement re suspected fraud
20/08/2004
Charter is investigating evidence that an employee may have been involved in fraud against the group. Investigations are at a preliminary stage and the precise nature and quantum of the suspected fraud, which appears at this stage to be confined to a single employee, are still to be determined.
Early indications are that a series of unauthorised payments totalling in the region of £10 million may have been made. The amounts of these payments appear to have been charged directly to reserves as and when made, although a detailed review of each payment has yet to be completed.
To the extent Charter is unable to recover any of the amounts paid out, it intends to seek recovery under its fidelity policy for which cover is limited to £5 million.
Charter will make a further announcement when it is able to clarify the position.
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959