August 22, 2001 Kenneth Clarke was called before the Commons all-party health committee chaired by Labour MP David Hinchliffe, after the Guardian's original disclosure that BAT stood accused of complicity in cigarette smuggling. These are extracts from his testimony on February 16 2000.
I am a member of the board and I am a member of the audit committee and I am a non-executive director. I hold those roles because I am satisfied and I satisfied myself that the company is a company of integrity. It is an extremely good corporate citizen
It is... quite unfounded to suggest that the company whose products are being smuggled is organising the smuggling. We do not, and we would not, and we would stop any of our employees doing it
I, together with my fellow directors, seek to ensure that the company follows the highest standards of probity, not just complying with the criminal law in whatever country we trade, also maintaining what would be regarded as good ethical standards by a British publicly quoted company
I am not an executive director and I have only been connected with the company at all for two years. I have of course had to make inquiries... one of the duties of the audit committee is to make sure that the system of internal control in the company is in place and that would include controls over our distribution channels if that became an issue
It is not in the interests of BAT to have our product smuggled any more than it would be remotely acceptable for us to be engaged in the smuggling. When it is carried out by others, it damages us. If we do get a complaint about the behaviour of the company, then we investigate it. If I get a complaint about the behaviour of the company, I investigate it. The Guardian article is one of the things I responded to.
We sell into the legitimate trade where we have chosen legitimate traders... We do not deal with any distributor who we think is just a smuggler. We deal with legitimate licensed distributors
An attempt is being made to discredit the tobacco companies but the tobacco companies are ethical companies
We asked Mr. Clarke recently whether he had been aware of the activities of
BAT International sarl, registered in Geneva, and its successor BAT
International Ltd, registered in Zug. He replied on August 16: I am of course
aware of the existence of BAT International... As a non-executive director of
the parent company I do not, however, have any detailed knowledge of the day to
day activities of the company
ICIJ's original exposs on cigarette smuggling, money laundering and organized crime can be found at:
Major Tobacco Multinational Implicated In Cigarette Smuggling, Tax Evasion, Documents Show
Global Reach of Tobacco Company's Involvement in Cigarette Smuggling Exposed in Company Papers
Tobacco Companies Linked To Criminal Organizations In Lucrative Cigarette Smuggling
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