Belgium to probe Bpost for potential overcharging on government contracts

FILE PHOTO: The logo of Belgium's national postal deliverer bpost is pictured outside the company's headquarters in Brussels·Reuters
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BRUSSELS (Reuters) - The Belgian government will launch an investigation into its contracts with postal operator Bpost, a minister said on Wednesday, after the company said it may have been overpaid for the work.

Following a compliance review of its services, Bpost said on Monday it may have been overpaid for the contracts over several years and withdrew its full-year financial guidance.

It said the "impact" of the issue on its 2023 operating profit could be 25-50 million euros ($28-55 million).

"It is self-explanatory to me that every euro overpaid must be refunded. If abuses have occurred, then there will be inevitable consequences," minister for public administration Petra De Sutter said in a statement.

A spokesperson for Bpost declined to comment on the government investigation, but said it would cooperate while continuing its own investigations. The company has given no details on how the potential overcharging might have happened.

Shares in Bpost, in which the government owns a stake of just over 50%, were down 6.8% at 4.22 euros at 1437 GMT, having earlier touched a record low of 4.086 euros.

($1 = 0.9025 euros)

(Reporting by Charlotte Van Campenhout; Editing by Mark Potter)