04 July 2005 00:01 [Source: ICB Americas]
French police have raided Rhodia’s headquarters and the office of the French finance ministry in a coordinated move to probe suspected accounting irregularities related to its acquisition of phosphates producer Albright & Wilson.
Part of the investigation opened into the company in October last year, the raids follow allegations of financial wrong-doing by management of Rhodia before 2003. Rhodia has said previously that a detailed defense against these claims, which are being investigated through the French court system, is being prepared.
Thierry Breton, France’s finance minister, chaired Rhodia’s audit committee and was on the company’s board of directors between 1999 and 2002. The finance minister’s involvement in the Albright & Wilson purchase has put him under the microscope of investigators.
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