Panalpina suspends services in Nigeria, confirms 2007 annual targets

PANALPINA, one of the world's leading suppliers of forwarding and logistic services, announced that it has suspended service offering in Nigeria due to potentially improper payments.

The Panalpina Group has commissioned lawyers and forensic accountants to investigate potentially improper payments in Nigeria, Kazakhstan and Saudi Arabia, said a company statement.

The suspension of these services and its potential impact on certain global agreements with oil and gas customers is expected to have an effect on the group's EBITDA. For the current fiscal year this is estimated to be between CHF20 to CHF30 million (US$17 - US$26 million).

Panalpina's US subsidiary has been instructed by US authorities to produce documents and other information related to its business, its services to certain customers and its services in Nigeria, Kazakhstan and Saudi Arabia.

In view of the unclear and uncertain regulatory framework in Nigeria, the services under review will remain suspended at least until investigations are completed to protect the interests of the company and its customers.

Panalpina said it's not only further strengthening its compliance programmes and training on a global basis but is also reviewing the reinforcement of its worldwide compliance organisation.