[Intl-tobacco] British to Probe BAT Smuggling Claims

[Robert Weissman]

British to Probe BAT Smuggling Claims

FOR BACKGROUND ON AND A RESPONSE TO THIS BREAKING STORY, SEE WWW.ASH.UK

Source: Reuters, Monday, 10/30/00
LONDON (Reuters) - Britain launched an official investigation on Monday
into
claims that British American Tobacco Plc was implicated in cigarette
smuggling
in Asia and Latin America in the early 1990s.

UK Trade and Industry Minister Stephen Byers said he had appointed
investigators to look at claims that the world's second largest
cigarette
company was involved heavily in orchestrating, managing and controlling
smuggling.

These claims were examined by a British House of Commons Health Select
Committee over the last 12 months, and Byers said the probe was part of
the
government's response to this committee's report on the tobacco
industry.

``I have given careful consideration to the unanimous recommendation of
the
Select Committee that the DTI should investigate the allegations of
BAT's
involvement in smuggling,'' Byers said in a Department of Trade and
Industry
statement.

``I have decided to appoint investigators to look into this and to
report back
to me as soon as possible. I will then decide what further steps I must
take
and whether the facts support a reference to other authorities,'' he
added.

BAT said it was ``naturally disappointed'' about the investigation. The
group
would ``co-operate fully with the investigators but will be making no
further
comments during the course of their work,'' it said in a statement.

The smuggling claims come from anti-smoking group Action on Smoking and
Health
(ASH) and investigative journalist Duncan Campbell who accused BAT of an

elaborate cigarette smuggling conspiracy in Colombia and laundering drug
money.

BAT has always said smuggling may have taken place, but insists that it
happened without its permission and backing.

BAT shares were unchanged at 482p by 1205 GMT in the lower London stock
market.