Bpost has discovered more government contracts that it may not perform in line with the law, in addition to the newspaper contract. The company reports this in a press release. Bpost expects a ‘material financial impact’ and scrapped its financial outlook. The stock lost 18 percent of its value when the market opened.
After an internal review of the tender for the distribution of newspapers and magazines in Belgium revealed illegal agreements, Bpost also scrutinized other tenders and public contracts.
The preliminary results of these additional compliance reviews, according to the postal operator, have shown that “Bpostgroup’s margins on certain services provided to the Belgian state may not be acceptable under applicable law.” Bpost does not yet want to disclose which contracts are involved.
The company warns investors that the findings are ‘expected’ to have a financial impact on the group. Therefore, the company withdraws previously communicated financial forecasts for this year.
Preliminary estimates indicate an impact for this year on operating profit (EBIT) of 25 to 50 million euros, says Bpost. The group does not disclose the impact on past earnings “pending further legal and financial analysis”.
Irregularities in the award of the contract for the distribution of the newspapers cost Bpost CEO Dirk Tirez and two directors their jobs last year. The three would have participated in illegal market agreements on the government contract. Bpost chairman Audrey Hanard announced ‘a scan of the entire organization’.
Minister of Public Enterprises and Post Petra De Sutter (Green) responds that if irregularities have happened, the Belgian state will demand back the overpaid money. ‘It is impossible for us to allow contracts with the wrong price,’ says De Sutter.
2023-04-25 07:10:00
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