KUALA LUMPUR – British American Tobacco (BAT) has a new chief executive less than a month after the company agreed to pay more than US$635 million (RM2.87 billion) after violating US sanctions over the sale of cigarettes to North Korea via an indirect subsidiary in Singapore.
BAT finance director Tadeu Marroco started his stint as CEO effective Monday, replacing Jack Bowles, according to its statement.
Bowles has been leading the company for almost four years, often credited with leading the company into expanding new categories such as vape and e-cigarettes.
Marroco, meanwhile, joined BAT in 1992 and was appointed to the board as group finance director in 2019.
He has also served on the BAT management board since 2014, with previous roles including regional director for Europe and North Africa, and group transformation director.
“Throughout my 30-year career with this great company, inclusivity and collaboration have always been at the heart of my leadership approach.
“My commitment as the new chief executive will be to nurture the passion in BAT for our people, our consumers and our brands.”
Javed Iqbal, who is currently the digital and information director, takes on the role of interim group finance director until a permanent successor has been appointed.
On April 26, the company agreed to pay more than US$635 million as penalty after BAT Marketing Singapore pleaded guilty to conspiring to violate US sanctions by selling tobacco products to North Korea and committing bank fraud.
The US Justice Department also said the company conspired to defraud financial institutions in order to get them to process transactions on behalf of North Korean entities, reported Reuters.
The department also announced criminal charges against North Korean banker Sim Hyon-Sop, 39, and Chinese facilitators Qin Guoming, 60, and Han Linlin, 41. They remain at large.
They are accused of buying leaf tobacco for North Korea’s cigarette manufacturers and falsifying documents in order for US banks to process 310 transactions valued at US$74 million.
The US claimed that the manufacturers made US$700 million in revenue.
BAT is the world’s second-biggest tobacco group that produces Lucky Strike and Dunhill cigarettes. – The Vibes, May 18, 2023
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