Belgian Post Group takes 75 mln euro provision after audit reveals 'malpractices' (updated)

Bpost SA

22/09/2023 19:41

(Recasts with provision, adds interim CEO's comments)
    By Augustin  Turpin
       Sept 22 (Reuters) - Belgian postal operator Bpost
 BPOST.BR  said on Friday it had taken a 75 million euro ($79.93
million) provision after an audit revealed malpractices,
including possible unlawful compensation received from Belgium's
government. 
        The group made the announcement after completing
compliance reviews into three areas of its operations. It said
it had submitted final reports to the external counsel of the
public services concerned.
    "The reports have laid bare a number of malpractices and/or
risks", it said in a statement, adding that it appreciates the
necessity of "acting in accordance with its responsibilities".
    Bpost last December said that a review of its concession
from the Belgian state for the distribution of newspapers and
periodicals in the country had revealed potential violations of
applicable laws.
    The compliance review was later extended to other tenders
and public contracts, shedding light on more irregularities.
    According to the findings of one of the reviews, the
compensation received for the processing of traffic fines may in
part constitute unlawful state aid. A separate review into the
group's management of 679 bank accounts for the government and
public agencies came to the same conclusion.
    Bpost said the provision of 75 million euros was based on
the legal and economic analyses.
    "We estimate that this amount corresponds to the repayment
of compensations overpaid by the Belgian state in recent years",
interim CEO Philippe Dartienne said in a call with journalists.
    "This figure is preliminary, as it does not yet reflect the
Belgian government's viewpoint", he added.
    The negative impact of the revised prices for services
provided in 2023 on the group's earnings before interest and
taxes (EBIT) has been reduced to 10 million euros, from 25
million to 50 million euros previously.

($1 = 0.9384 euros)

 (Reporting by Augustin Turpin; Editing by Elaine Hardcastle and
Paul Simao)
 ((augustin.turpin@thomsonreuters.com;))