A PHARMACEUTICAL company has claimed its former shipping manager accepted bribes and assisted another company in defrauding it of some €1.3 million through overcharging it for air freight shipments.
In High Court proceedings, Wyeth Medica Ireland is seeking damages and/or compensation from the defendants for the alleged overcharging over a period from 2001 to 2003.
It had initiated the action against Patrick Walsh, former shipping manager of Wyeth’s Newbridge plant, of Old Town Rise, Sallins Road, Naas, Co Kildare, and Elite Logistics Ltd (in liquidation). In defences submitted, the claims have been denied.
Wyeth yesterday secured permission from the Master of the High Court to add three other defendants to the action – Patrick McNamara, The Golf Links, Malahide, Co Dublin; Brian Falvey, Carrick Court, Portmarnock, Co Dublin; and Fergus Geraghty, Sundrive Park, Kimmage, Dublin.
In its action, Wyeth claims Elite Logistics Ltd, formerly named Elite Kamino International Transport Ltd, was one of a number of companies retained to transport Wyeth products.
It claims Mr McNamara was a director and secretary of Elite, Mr Geraghty was also a director and Mr Falvey was an employee of Elite.
It claims Mr Walsh became shipping manager with Wyeth in early 1993 and, around January 2001, Elite and the other three defendants agreed with Mr Walsh to make payments or inducements to him in return for his improperly arranging for Elite to get a substantial portion of Wyeth’s air freight work and allowing Elite to significantly overcharge Wyeth for that work.
It is alleged the other defendants, acting in concert with Mr Walsh and with his “active co-operation”, had overcharged Wyeth by misrepresenting and deliberately inflating the volumetric weight of each cargo consigned to it.
Mr Walsh had breached his contract of employment with Wyeth in several respects and had also breached his duty of loyalty and fidelity to the company, it is claimed.
Among the alleged breaches, it is claimed Mr Walsh had revealed confidential information about Wyeth’s business to Elite, including Wyeth’s transportation budget for 2002.
Using that information, it is claimed the Elite defendants were then able to calculate the overall amount by which it overcharged Wyeth during the relevant period in such a way as to avoid exceeding Wyeth’s transportation budget and therefore avoid scrutiny of its charges to Wyeth.
Wyeth claims it is entitled to an account by Mr Walsh of all money received by him or on his behalf by way of bribes or secret commissions and that the other defendants were liable to account for all profits made by them as a result of dishonestly assisting Mr Walsh’s alleged breaches of fiduciary duty.
