Sims to investigate potential fraud in UK WEEE business
The global scrap recycling group Sims Metal Management expects to post an inventory adjustment of around AUD60m (ca. €47m) related to its British e-scrap recycling activities and will investigate the control failures and potential fraudulent conduct it believes to have led to a "material" overstatement of the inventory value of its UK business.
In a filing with the Australian Securities Exchange (ASX) submitted on Monday, Sims said that the inventory adjustment in question was predominately associated with the Sims Recycling Solutions (SRS) business at Long Marston, Warwickshire, and Newport, Wales, and included both changes in the assessment of the net realisable value of certain stock and book to physical adjustments.
According to Sims, the concern has already established a special committee to determine the amount of the adjustment and the impact on the company's accounts.
The full story will be published in the digital and print versions of EUWID Recycling and Waste Management 02/2013 on 23 January 2013.