DB Schenker uncovers fraud in subsidiary's books

Global - German logistics provider DB Schenker has discovered a major accounting fraud spanning the past few years in its Belgian subsidiary Schenker NV.

The anti-corruption team from parent company Deutsche Bahn (DB) allegedly uncovered inaccurate accruals dating back several years, involving tens of millions in euro.

According to local sources, theses figures based on initial estimates, could amount to between US$60 million to US$70 million. Schenker NV currently operates in Belgium through seven locations, with the main office in Antwerp.

Wolfgang Schaupensteiner, DB chief compliance officer was quoted in local media as saying, "Management personnel in Antwerp have to explain to us what happened to unaccounted amounts in the double-digit millions, in a case that took place over a longer period of time."

Local media reports has suggested that Schenker Deutschland's head of finance, also responsible for the Belgian subsidiary Schenker NV, will be replaced at the end of August 2008.

Norbert Bensel, head of DB Schenker, says "Our customers are not affected in any way by the damages that were incurred. We stand for zero tolerance, regardless of the function, status or position of the person concerned within the organisation."

The fraud incident could not have come at a worse time for DB, considering the company is months away from its initial public offering (IPO), which will entail the flotation of approximately 25% of the stock of its rail and logistics subsidiary DB Mobility Logistics AG.