ZURICH: Swiss engineering group ABB revealed the discovery of what it called a “sophisticated criminal scheme” in its South Korean subsidiary on Wednesday, which it expects will result in a $100 million pre-tax charge. ABB Chief Executive Ulrich Spiesshofer described the alleged fraud as “shocking news” which he said could dent the power equipment and industrial firm’s reputation. “The entire ABB group – all 132,000 of us – will have to live with the consequences,” Spiesshofer told staff in a letter after the company said it had uncovered significant embezzlement and misappropriation of funds in its South Korean subsidiary. ABB, which already faces an investigation into suspected bribery and corruption in Britain, has been under shareholder pressure due to a shrinking order book, although Spiesshofer won some breathing space when the firm posted the first uptick in new business in nearly two years in the fourth quarter of 2016.