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(Alliance News) - DX Group PLC on Tuesday said it will strengthen its governance policies after a damning probe found instances of management falling short and even possible bribery by some employees.
The Slough, England-based parcel freight, secure courier and logistics provider plans to "draw a line under past events" and plans to name three independent non-executive directors to its audit & risk committee. It also pledged to appoint a "big four" professional services firm to review its compliance policies and procedures.
DX in November 2021 announced its plans for an internal investigation. In February of this year, Grant Thornton resigned as its auditor, citing concerns about the findings of the corporate governance probe.
DX on Tuesday said the probe found that "confidential competitor information" was obtained, in exchange for an offer of payment.
"As such, the Investigation concluded that there may have been a breach of the Bribery Act 2010 by the employees concerned and that remedial work was required by the group to improve compliance procedures and to mitigate the risk of potential future incidents," DX explained.
At a corporate governance level, DX found that there were efforts to stifle the investigation and some of the employees found to have potentially engaged in bribery were not properly punished.
DX said: "Certain actions were highlighted as falling short of good corporate governance. Insufficient importance was attached to ensuring that the Investigation was conducted according to best practice and to its fullest extent, in particular with the Investigation being curtailed and information flows restricted. Insufficient disciplinary action was taken at the time in respect of the employees involved in the allegation of bribery. These issues and management failures were identified as barriers to achieving an appropriate outcome for the group and in a timely manner."
"The resultant time taken to deal with the matter has seen the group unable to file its annual report and accounts for the year ended 3 July 2021 with the Registrar of Companies within the required deadline, the company's shares suspended from trading on AIM, and the resignation of its previous auditor and of two non-executive directors. As the Investigation and Inquiry have now concluded, the necessary actions have been, or will be taken, to resolve the matters identified."
DX said it is taking "further disciplinary action" with relevant staff members.
It also plans to appoint three independent non-executives to its audit & risk committee. It will also turn to a major professional services firm "to review the group's compliance policies and procedures, with the company being committed to implementing any subsequent recommendations to the fullest extent reasonably possible".
Other measures will include a "detailed risk assessment" to assess its exposure to bribery, as well as altering its fraud response plan.
"Reflecting the board's commitment to seek the lifting of the suspension of trading in the company's shares on AIM as quickly as possible, the board will also take such further steps as may be required to improve its internal processes and to meet its corporate governance objectives. In the meantime, trading in the company's shares will remain suspended, with further updates to be made in due course," DX added.
Executive Chair Ronald Series added: "This period has been highly unsettling for shareholders and for the company. We are pleased to draw a line under past events and to focus on DX's ongoing development and growth. We are also implementing changes to strengthen the group's corporate governance policies and procedures."
By Eric Cunha; ericcunha@alliancenews.com
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