CSC crisis chief Carsten Lind joins Fujitsu

Carsten Lind, the chief executive at the Danish division of CSC during a period of crisis, is moving to take a senior role at rival outsourcer Fujitsu.

Lind announced his resignation from CSC in October, at a time US regulators detailed a fraud investigation into accountancy problems at the local division. In the same week, CSC global chief executive Mike Laphen announced his retirement.

In the case of Lind, no official reason was given for his sudden departure from CSC, which came after only 18 months in the role. He had been appointed to focus closely on improving the business in the region. Laphen's departure was described as a retirement, and made no references to the company's troubles.

Lind, who has also previously served as chief information officer at the Danish Post Office and senior VP of technology at Deustche Telekom, will become chief operating officer at Fujitsu Nordics. In the role, he will be based in Stockholm and will also be chief executive of the Sweden business, which employs 1,200 people. Fujitsu Sweden CEO Peter Kopelman is leaving the company.

The president of Fujitsu Norway will also report directly to Lind.

Fujitsu's Nordic chief executive Bengt Engstrom, who will closely manage the Denmark and Finland operations, said Lind's COO role was being introduced in order to better "coordinate" the Nordic businesses and their delivery centres. He added that he expected "improvements both externally and internally" as a result of the change.

Fujitsu has not provided comment on Lind's appointment following the troubles at CSC Denmark.

Meanwhile, CSC's Nordic operations are now being led by John Walsh, based in Denmark where the company employs over 2,000 staff. Walsh, a president at CSC, was drafted in to the region in December, as news spread of the serious challenges it faced.

Last week, it emerged that CSC had lost a large project mired by cost overruns and angry political arguments. The Danish national police dropped the project, known as Polsag, in which the cost had ballooned from the DKK153 million (£17 million) budgeted to DKK425 million (£48 million). CSC has not commented.

Several of its projects are understood to have been impacted heavily by strikes among the company's workforce, over a pay dispute. One of its largest projects in Denmark, with the country's Tax and Customs Administration, is also encountering problems. A senior executive of that administration has accused the company of wilfully obscuring the truth about the project's progress.

CSC is facing an accounting scandal and deepening financial problems in the region. Fraud allegations, levied by US regulator the Securities and Exchange Commission, claim CSC committed DKK 500 million (£59 million) worth of global stock manipulation through incorrect financial reporting.

CSC has maintained former employees were to blame for the Danish problems, and in its attempts to solve the issues it has replaced over half of its senior finance staff there and vowed to tighten controls.

The fraud allegations have also spread to Australia, where CSC has disclosed it found "intentional misconduct" around accounting.

In November, CSC reported a £1.77 billion quarterly loss. Group chief executive Mike Laphen announced his resignation within the next year, though he did not disclose any reason for the timing.

In the UK, the company has announced it is facing a potential £960 million writedown on its NHS contract. CSC invested heavily in the programme, yet only delivered patient administration systems to a handful of trusts. The programme has now been decentralised and CSC is no longer expected to deliver the systems to a significant number of the trusts originally contracted.

CSC is also being sued by a large pension fund, which is a major shareholder. The fund alleges that the company painted an inaccurate and unfairly positive picture of its prospects on the NHS programme.

Copyright © 2012 IDG Communications, Inc.

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