The parent company of an international group (turnover 200 million Euros and 1,000 employees) demands that malversation has to be stopped in the Chinese subsidiary.
International plant manufacturer with revenue of over 200 million Euros and more than 1,000 employees.
Detection of serious and company-endangering malversation:
- Acquisition of companies without substance, that belonged to the managers.
- Already paid invoices not booked.
- Missing project management system.
- Incorrect tax returns.
- Non-transparent and insufficient accounting.
- Immense warehouse.
- Fictitious employees.
Developing and implemention of action plans.
Accounting, tax, and social security audits.
Implemented international accounting and reporting.
Retained loyal employees
Implemented organisational changes
Implemented plan to prevent future malversation.
- Total damage, discovered in previous quarter, was 4.3 million Euros
- Secured profitable future of the Chinese subsidiary.