November 30, 2017

HKScan requests Estonian authorities to look into malpractice allegations



HKScan Corporation announced plans to initiate an internal inquiry investigating the practices of its Baltic business in November 2016, the company said.


The purpose of the inquiry was to ensure that HKScan's Baltic management is complying with the principles of good governance and the company's code of conduct.


In December 2016, HKScan shared the results of the inquiry, affirming that certain members of the Baltic management had indeed violated HKScan's code of conduct and the principles of good governance. Four members of management were relieved of their duties and warnings for breaches such as misuse of corporate funds were given.

HKScan has requested the Estonian authorities to investigate whether any violation of the law has taken place. This month, the Estonian public prosecutor has published a press release related to the criminal allegations.
"It is important that these violations were brought to light and action were taken to ensure that they will not continue.

HKScan is committed to a thorough investigation, and so we have turned to the Estonian authorities," said Anne Mere, HKScan's executive vice president of market area (Baltics).

After the violations of HKScan's operating guidelines were identified, the group has taken several measures to develop collaboration and leadership-related practices in Estonia. For example, co-operation practices between employer and employees are being enhanced further.