Detectives may investigate Overton Mill (From Basingstoke Gazette)

Detectives may investigate Overton Mill

10:54am Thursday 9th September 2010 in

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THE Serious Fraud Office may investigate the problems at De La Rue’s Overton Mill after bosses revealed they believe key staff have been falsifying documents.

The company said it has passed its findings to the Serious Fraud Office and is taking disciplinary action against those involved.

A new managing director has also been brought in for the currency division.

The world’s biggest maker of banknote paper said paper test certificates for customers had been falsified.

It is expected the problems will cost £35 million in lost profits for the half-year to the end of September.

Chief executive James Hussey has already resigned over the issue, which forced De La Rue to suspend production at Overton Mill in July.

The company says it is now ready to re-start production of the special banknote paper for which the specifications were not being met.

Nicholas Brookes, chairman of De La Rue, said: “The behaviour of some of our employees in this matter was totally unacceptable and contravened De La Rue’s rigorous standards.

“We do not tolerate such behaviour and appropriate disciplinary action is being taken.

“The board has put an immediate end to the irregularities that have been identified.”

The problems are thought to concern the supply of watermarked banknote paper to the Reserve Bank of India – the company’s biggest contract.

Indian government officials were supposed to have flown in to the UK last month to discuss the problem.

Shares have plunged by more than a quarter since the revelations first emerged and industry experts fear De La Rue’s reputation will have been seriously damaged.