International Flavors & Fragrances (IFF) has announced it is leading an investigation over Israeli ingredient and flavor subsidiary Frutarom after allegations were made that the company has made two improper payments.
Following the integration of Frutarom into IFF last year, the company was said to have been made aware of the payments from two Frutarom businesses operating in Russia and Ukraine to ‘representatives of a number of customers.’
Talking at the time of its financial results reporting, IFF said, “IFF’s investigations are not yet complete, but preliminary results indicate that improper payments were made and that key members of Frutarom’s senior management at the time were aware of such payments.”
Keen to dispel concerns that the payments would have impacted its results, the company said, “IFF does not believe the impact from these matters is or will be material to IFF’s results of operations or financial condition.”
IFF is now looking at taking remedial action regarding the payments, with the company stating, “Although the investigations are continuing, based on the results to date and other compliance-related integration activities IFF is not currently aware of similar instances of misconduct.”