Danish company Hempel, which produces ship coatings, has set aside $40m for costs in a bribery case in Germany, as revealed in the company’s annual report.
German authorities are investigating after compliance issues and inappropriate practices came to light in October last year, with allegations that Hempel staff in Germany bribed ship managers for their business.
In response Hempel has dismissed ten employees including three senior executives. The executives were accused of gross negligence.
At the same time, the company says it has been taking corrective action, making substantial investment to prevent future such compliance failures.
It is improving co-operation between its audit committee and its executive board and it is upgrading its whistleblower system to make it external from the company.