[Intl-tobacco] BAT denies black market allegations - report

[Robert Weissman]

BAT denies black market allegations - report
Source: Reuters, Monday, 1/31/00
Sunday January 30, 9:54 pm Eastern Time

LONDON, Jan 31 (Reuters) - British American Tobacco (quote from Yahoo! UK
& Ireland: BATS.L) has denied allegations it benefited from black market
sales of its cigarettes, Britain's Guardian newspaper reported on Monday.

The Guardian said the allegations were based on internal BAT documents
found in a depository in Britain and analysed over 11 months by the
International Consortium of Investigative Journalists, a group based
within the Center for Public Integrity in Washington.

It was alleged that the world's second largest cigarette-maker arranged to
supply cigarettes to wholesalers and distributors expecting they would
find their way into the hands of smugglers.

A spokesman for British American Tobacco (BAT) contacted by Reuters on
Sunday said he had not seen the Guardian report and could not comment on
it.

The documents -- which covered the period from 1990 to 1995 -- were
alleged to show the smuggling channels which the company's cigarettes
travelled along were always operated and managed by others.

They were also alleged to show how euphemisms, such as ``duty not paid,''
``general trade'' and ``transit,'' were used to describe unorthodox sales
channels, the Guardian said.

It said BAT, which sells cigarette brands Kool, Kent and Lucky Strike, had
issued a general statement denying all allegations and saying that
researchers had selectively chosen documents.

``We do not intend to answer questions or address allegations apparently
based on highly selective and out-of-context documents about matters which
are more properly addressed -- and in many instances are being addressed
with our full cooperation -- by governments and customs authorities around
the world,'' the Guardian quoted BAT as saying in its statement.