Weitnauer refutes tobacco allegations

22-Nov-2002

Weitnauer Group has sought to clarify its position regarding an EU claim in which accusations against RJ Reynolds (RJR) are reported concerning smuggling and money laundering

Recent European Commission statements contain a presumption that Weitnauer allegedly played a role in connection with the distribution of Reynolds products. Weitnauer said it wished to state that the accusations about the company as an actor of any illegal action or wrongdoing are incorrect. In the claim against RJR (since acquired by Japan Tobacco), neither the Weitnauer Group nor its customers have been sued, or been requested to offer testimony about the allegations, it said.

The European Commission together with 10 EU member states has filed a 150-page claim which is the substance of a lawsuit in the US against RJ Reynolds, the tobacco group behind the Camel and Winston brands. "Any allegations that we were involved in, or aware of, money laundering, conspiracy or any other illegal activities are completely absurd," RJR has said.

Weitnauer said the group was not involved in the examples of alleged cigarette smuggling cited in the claim - either directly or indirectly. Weitnauer said its turnover generated with RJR products is very low and represents less than 0.3% of its consolidated sales (of $700m). Its name had simply been used to fuel a conspiracy in order to reinforce the claim against RJR, it claimed. Weitnauer has never had the opportunity to state its view beforehand. Weitnauer said its management has never been the subject of investigations or proceedings adding: "The fact that careless presentations of shallow investigations and blown up media stories are able to put respectable companies into an unfavorable light, gives cause for extreme concern."

"We are carefully scrutinizing this matter and will take all the necessary steps at the right time in order to preserve our reputation," said Weitnauer.

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