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Sasol makes provisions for fine

Oct 03 2008 14:27

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Johannesburg - Sasol, which was fined €318.2m by the European Commission this week for being part of a cartel to fix prices, said on Friday it would immediately make financial provisions for the fine in its accounts.

"We could not provide for the fine because we didn't know what the size of the fine would be," Pat Davies, Sasol's chief executive officer told a press briefing.

"We will provide R3.8bn for the fine immediately. The money will come from our treasury, we have strong cash flow. Whatever operating profit was going to be this year we have to subtract the fine from that."

He said Sasol planned to appeal the fine, which would take a long period of time. Sasol is obliged to pay the fine within three months.

- Reuters

 
 
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