Swedish firm SCA in Colombian diaper probe
TT/The Local · 19 May 2015, 07:52
Published: 19 May 2015 07:52 GMT+02:00
- Head rolls in Sweden’s private jets scandal (27 Apr 15)
- Banking giant probed over 'hunting trips' (02 Feb 15)
The companies involved are alleged to have entered into secret deals on the prices as well as quality of their products, reported Swedish newspaper Dagens Nyheter on Tuesday. They are part of an ongoing investigation by Colombian authorities.
Swedish forest and paper group SCA owns 50 percent of one of the firms, Productos Familia, which is a market leader in the Colombian soft paper industry.
The company, which among other things produces diapers and toilet paper, is accused of having been involved in starting these suspected cartels in 1998 and 2000.
“We take all these suspicions seriously. Familia cooperates fully with authorities to assist the investigation. The probe concerns activities up until 2013 and extends to, apart from Colombia, other countries in South America. It is yet too early to say exactly what and which countries are part of this,” SCA sustainability officer Kersti Strandqvist told Swedish newspaper Dagens Nyheter.
Stockholm-based SCA is Europe's largest private owner of forest land and manufactures paper, mainly to be used for personal care products.
The reports come as the company struggles to restore its reputation after reports of “excessive” use of private jets by its corporate heads.
Earlier this year, it was claimed that managers' families had been taken to a hunting lodge owned by SCA and that spouses and children had accompanied executives on foreign business trips, including to the Olympic Games in London in 2012.
The scandal caused unprecedented upheaval to Sweden's boardrooms, with four of its biggest companies – Handelsbanken, Industrivärden, SCA and steelmaker SSAB – all receiving new chairmen earlier this year.