Fraud chiefs probe condom maker

SSL, maker of dishwashing gloves, has undertaken an internal clean up

Fraud investigators are to probe SSL International, the maker of Durex condoms and Marigold gloves, over inflated sales figures filed in official reports.

The Serious Fraud Office and police are to follow up an internal SSL examination which found that sales were overstated by £22m, and profits by £19m, in 1999 and 2000 statements.

"The SFO has decided, having considered the report, to open an investigation," an SFO spokesman told BBC News Online.

Executives responsible for the exaggerated figures face prison terms if found guilty of fiddling the books.

"In pretty much most cases custodial sentences have accrued where a person has been found guilty, or pleaded guilty, in court [to fraud]," the SFO spokesman said.

He also said the SFO is called in only to the most "complex and significant" fraud cases, typically involving at least £1m.

Boardroom shake-up

SSL been reviewing its operations since February, when it announced the ousting of its chief executive and the appointment of a finance director.

The company announced in May it had uncovered the overstatement during a probe into trade loading - a legal business practice which involves the forward buying of products by customers.

The last two executive directors in office at the time of the profits overstatement resigned in May, saying, in a company statement, that there was "no question of impropriety" on their part.

Stuart Wallis, chairman since 1998, confirmed last month he was stepping down to be replaced by former Grand Metropolitan executive Ian Martin.

Operational change

SSL has committed to ridding itself of trade loading.

"The objective that has been set by the board is to achieve a clean base from which we can measure the organic growth of the business in the future," Mr Wallis said in March.

In the City, SSL shares closed down 1p at 545p.

The shares lost 40% of their value in one day in November, after the firm revealed that an overstock in surgical gloves would hit profits.