UGL Ltd has been accused of “cooking the books” by the former leader of its property services arm, according to The Australian.
Robert Shibuya, who left UGL Property Services (now DTZ) in September last year, has included the allegations and claims of racial discrimination amid an unfair dismissal claim filed in California last week.
Mr Shibuya asserts his position was terminated due in part to “complaining about, protesting and opposing the defendant's 'cooking of the books' by misstating financial results and manipulating employee bonuses so as to deceive investors” and for “refusing to participate in such unlawful activity by presenting the misstated financial results to the board and investors,” The Australian reported.
UGL reportedly said the allegations were no more "ambit claims of a disgruntled former employee" and plans to fight the case and possibly launch counter-claims against Mr Shibuya.
The news came ahead of UGL's half-year results announcement, during which it said it was considering private-equity proposals for its DTZ property business but ruled out a formal trade sale process. The engineering contractor divulged demerger plans last year, but was later rumoured to be leaning to sale rather than float of DTZ.
UGL later released a statement to the Australian Securities Exchange noting Mr Shibuya's claims.
"These claims of financial manipulation and discrimination are completely baseless, and UGL notes that they are made in the context of a claim for monetary compensation for dismissal by a former employee," the group said in the statement.
"UGL intends to defend them vigorously.
"[UGL] is also examining potential counter claims against Mr Shibuya."