Swiss logistics group Panalpina Welttransport Holding AG said it has suspended part of its service offering in Nigeria, including its temporary import services for oil and gas customers, citing the country’s “uncertain regulatory framework”.
The suspension comes in the wake of US authorities’ request to the Swiss freight handling group’s local subsidiary to produce documents and other information related to business in Nigeria, Kazakhstan and Saudi Arabia.
The decision will have an effect on the group’s EBITDA, estimated at 20-30 mln sfr, Panalpina said.
The company has nonetheless confirmed its positive outlook and financial guidance for 2007.
Panalpina said it has commissioned external lawyers and forensic accounting experts “to conduct a thorough investigation into certain issues, in particular potentially improper payments in these countries”.
“In view of the unclear and uncertain regulatory framework in Nigeria, the services under review will remain suspended at least until the ongoing investigations are completed,” the Basel-based company said.
Panalpina chief executive Monika Ribar said Panalpina is determined to do business in compliance with the US Foreign Corrupt Practices Act and applicable laws under all circumstances.