The Austal (ASX:ASB) share price has dropped slightly amid corruption allegations

The Austal share price fell 0.93% today as the company was involved in media controversy regarding corruption charges.
The post The Austal (ASX:ASB) share price has dropped slightly amid corruption allegations appeared first on Motley Fool Australia. –

navy ship on the water representing austal share price

The Austal Limited (ASX: ASB) share price fell slightly as the shipbuilder refuted any wrongdoing over a corruption allegation involving the Australian Border Force (ABF). Austal’s share price closed 0.93% lower at $3.19.

What happened?

Austal cited a story in The Age regarding an investigation into the conduct of ABF employees. The issue concerned an outstanding milestone payment by ABF for the Cape Class program in 2015.

While Austal noted it did not usually respond to media articles or speculation, the company felt the need to in this case as the story had the potential “for adverse, misleading and incorrect inferences to be drawn against the company as a result”.

Austal said the “success fee” mentioned in the article was paid as a result of partial satisfaction of a contractual milestone payment obligation. Rather than, as the article suggested, “corruption inside the ABF”.

The article also suggested that the investigation uncovered evidence that the company “misled markets”. However, the shipbuilder denied the allegation, claining it was not aware of any such evidence.

Austal said in the announcement the investigation was over, but journalist reports said that the investigation was ongoing, albeit in a different form.

Austal has had no contact with the investigation board –the Australian Commission for Law Enforcement Integrity.

About the Austal share price

Austal is Australia’s largest defence exporter and shipbuilder. The company owns shipyards in Australia, the US, Philippines and Vietnam with service centres worldwide, including the Middle East.

Furthermore, it has grown to become the world’s largest aluminium shipbuilder and is Australia’s largest defence exporter.

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Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Austal (ASX:ASB) share price has dropped slightly amid corruption allegations appeared first on Motley Fool Australia.

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