CEO resigns as up to $8m missing in Middle East after control processes circumvented
Speedy Hire has discovered ‘irregularities’ in its accounting for the Middle East International Division, with an amount as high as $8 million missing.
According to a statement by the company, “certain control processes within the International Division have been repeatedly and deliberately circumvented”, and the accounting irregularities stretch back over a a number of accounting periods.
Group chief executive, Steve Corcoran has resigned, while the finance director of the International Division has been suspended, and other senior divisional management are the subject of further investigation.
The company has hired law firm Addleshaw Goddard LLP to conduct an independent legal investigation, and forensic accountants are in the process of being appointed.
The issues are believed to affect a limited number of smaller contracts, and do not relate to the major ZADCO and Al Futtaim Carillion contracts nor the Kazakhstan joint venture said the company. The UK operations are unaffected.
The company’s share price on the UK stockmarket tumbled on the news. Speedy said it is engaged in a constructive dialogue with its lenders.