By Kyunghee Park

(Bloomberg) — Daewoo Shipbuilding & Marine Engineering Co. mentioned South Korean prosecutors indicted a former chief monetary officer for allegedly dressing up the corporate’s earnings over a three-year interval.

The government, who wasn’t recognized and left the corporate in March final 12 months, has been charged for allegedly lowering prices of offshore tasks that have been beneath development to inflate internet earnings by a mixed 2.76 trillion received ($2.4 billion) from 2012 to 2014, the world’s second-biggest shipbuilder mentioned in an announcement to the inventory change late Friday.

Shares of the shipyard, which have been suspended late Thursday, received’t commerce till a Korea Exchange committee evaluations the matter, the corporate mentioned. When contacted, Daewoo Shipbuilding mentioned prosecutors had arrested two former chief government officers earlier this 12 months as a part of the probe, however declined to elaborate past what it offered within the regulatory submitting.

“The company will improve transparency and strengthen internal oversight to ensure that this won’t happen again,” Daewoo Shipbuilding mentioned within the assertion. A spokesman for the prosecutor’s workplace in Seoul wasn’t instantly out there for remark.

South Korean prosecutors have been investigating Daewoo Shipbuilding after posting its largest loss final 12 months on write-offs for delayed tasks and collectors prolonged assist with 4.2 trillion received of funds to ease a money scarcity. The firm is amongst shipyards restructuring after oil costs which have greater than halved within the final two years crushed demand.

Daewoo Shipbuilding posted a internet loss, excluding minority curiosity, of three.19 trillion received in 2015. The firm restated its earnings from 2013 on the recommendation of its auditors to higher replicate the write-offs.

© 2016 Bloomberg L.P