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Background information on R7 project in Czech Republic

In March 2015 media reported suspicions of Skanska being involved in corruption in Czech Republic in 2010. Skanska performed two different investigations into the project R7, 2011/2012 and 2015, but did not find any evidence of ethical breaches.

In March 2015 Swedish Radio (Sveriges Radio P1) published accusations of suspected corruption in a road & bridges project called R7 in the Czech Republic. According to the news story Skanska won a road & bridges contract in 2008. The project was supposed to be executed in a joint venture with two Czech companies. In 2010, before the project really started, the JV share was changed and Skanska transferred a share to the joint venture partner Geosan worth about 35 MSEK. The radio claimed Skanska still performed the work and that the money was to pay off a bribe.

The matter of the change in JV share had been recognized by Skanska already in 2011 and an internal audit was performed to clarify the circumstances. The audit was headed by the former Senior Vice President Internal Audit. The result of the internal audit was presented to the Audit Committee in 2012 and concluded that the change was not executed in line with Skanska's internal procedures, but there was nothing indicating ethical breaches.

The former Senior Vice President, that performed the internal audit presented in 2012, was then interviewed in radio where he in contrast to his previous report suggested that there was ethical breaches and claimed top executives in Skanska was aware of this, among them the former Business Unit President, now Minister of Infrastructure in Czech Republic, Dan Tok. The claims were new to Skanska.

Following the media attention Skanska initiated a second investigation on the R7 project. The investigation was this time performed by the auditing company Deloitte. The investigation once again showed breaches against internal rules and regulations but no ethical breaches. This was communicated externally and internally in December 2015.

To act ethically and transparently is a Skanska value and we strive to do business with a high degree of integrity and transparency and understand and respect that sound ethical behavior is needed for us to be selected by the best customers, partners and other stakeholders.

After the media reports The Swedish Prosecution Authority also initiated a preliminary investigation on suspected bribery.

We are responding to the authority but cannot comment on ongoing investigations and proceedings.

Please help by directing all questions from media to Head of Media Relations, Edvard Lind.

Last updated: 10/28/2016

Edvard Lind

Head of Media Relations

+46 10 44 88 808 +46 72 72 71 117
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