Texas Petrochem employee fired in payment probe

13 September 2007 16:27  [Source: ICIS news]

HOUSTON (ICIS news)--An employee at Texas Petrochemicals was fired and taken into custody by federal authorities on Wednesday after an investigation uncovered questionable payments that were reflected as operating expenses, the company said on Thursday.

The company did not name the former employee and it was not immediately possible to reach the person for comment.

"It's a very depressing situation," said another Texas Petrochemicals employee who spoke on condition of anonymity.

Texas Petrochemicals said it began an internal investigation into unauthorised payments from accounts after information was uncovered by senior management in July through the company's internal auditing efforts.

The company has retained an outside law firm to assist in the investigation.

The former employee under investigation was taken into custody by federal authorities pursuant to a criminal complaint filed in a federal court in Houston by the office of the US Attorney for the Southern District of Texas.

Texas Petrochemicals said it has been working with the federal authorities on the investigation.

The payments in question were reflected as operating expenses in the company's accounting records during the periods in which they were made and, therefore, were reflected in the company's earnings and earnings before interest, taxes depreciation and amortisation for those periods, the company said.

Texas Petrochemicals said it will delay the release of its audited financial statements for the fiscal year ended 30 June until after the internal investigation is completed.

By: Tracy Dulle
+1 713 525 2653

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