Lernout & Hauspie loses co-founder

Lernout & Hauspie (L&H) has announced the resignation of three of its directors, including that of co-founder Pol Hauspie. Also leaving are former managing director Nico Willaert, and former chief executive and president Gaston Bastiaens.

John Duerden, the Belgian speech recognition software specialist's managing director, who is adding president and chief executive to his title, said that the decision represents the commitment of L&H's new management and board to a "comprehensive remedial course of action".

Separately, Joo Chul Seo, former chief executive of L&H Korea, has been suspended in the wake of investigations into financial irregularities in that division. Some companies identified by L&H as Korean customers have denied ever doing business with the firm.

Co-founder Jo Lernout relinquished his position as co-chairman earlier this month, and Duerden hopes that the clean out will help restore the company's reputation. "We will continue our effort to obtain all the facts and to restore integrity and reliability to our financial reporting system," he said.

Lernout outlined L&H's commitment to work "closely with our outside auditor, KPMG, to restore their trust through an unwavering policy of transparency, candour and co-operation with them".

Stepping into the role of acting president and general manager at L&H is Dong-Hee Kim, formerly a vice president with the company's enterprise telephony solutions division.

The company is restating its financial reports for 1998 and 1999 after an audit probe.