NEWARK, Del., July 6, 2010 (GLOBE NEWSWIRE) -- Innospec Inc. (Nasdaq:IOSP) (the "Company") has always made clear in its public filings that from 2006 to 2009 it was the subject of investigations by U.S. and U.K. government authorities into legacy transactions conducted by executives who are no longer employed by the Company. Those investigations were into violations of the U.N. Oil for Food Program, the U.S. Foreign Corrupt Practices Act, the U.S. Foreign Assets Control Regulations and U.K. anti-bribery laws.
In recent weeks, there has been continuing coverage in the media of the Company's resolution with the government authorities resolving all matters relating to the investigations. All of the issues currently being raised in the media have already been dealt with as part of that resolution, in which the Company pleaded guilty and agreed to pay total fines to the U.S. and U.K. authorities of up to $40.2 million. None of the issues currently being raised in the media are new.
As we have previously disclosed, we have taken multiple steps, including the following actions, to effectively remedy the situation and protect against the risk of this recurring:
- The individuals involved with this issue, including all those referred to in certain recent media articles, are no longer employed by the Company.
- A new management team, including a new CEO, is now in place.
- The Company has already implemented an enhanced compliance program driving the highest ethical standards into our business globally. An independent assessment of the strength of that program is part of the settlement agreed with the U.S. and U.K. authorities.
- We have rigorously reviewed all our external relationships, with particular focus on agents and distributors, which is intended to ensure that they have the same high standards of compliance as our own employees.
- As part of the resolution agreement and in collaboration with the Department of Justice, an independent corporate compliance monitor is being appointed for at least three years to provide external validation of our corporate compliance.