New President in Skanska Latin America following a breach of Code of Conduct in Argentina

7/20/2006 8:35 AM CET
Press release

Skanska has found a breach of the Company’s Code of Conduct in a local operation in Argentina. Improper costs have been charged to two projects resulting in erroneous VAT reporting. The subsequent correction will have a negative impact on Skanska Latin America’s operating income amounting to USD 1.7 M, SEK 13 M, which will be reported in the second quarter 2006. Seven employees involved in the two projects have lost their employment with the company.
Following this event the Business Unit President Gustavo Vago has decided to resign his position. The Chief Operating Officer Hernán Morano has been appointed new Business Unit President. Between 2002 and 2005, Hernán acted as the Project Director within Skanska for the Autopista Central project in Santiago de Chile, the largest infrastructure development investment in Skanska.