Authentix, Inc. Refutes IBN Story, ‘UK Firm Gets Contract, India Gets a Bad Deal’
Dallas -  September, 2009
Authentix, Inc., the global leader in authentication, today refuted the recent IBN broadcast report that misrepresents the Authentix kerosene marking program in India from October 1, 2006 to December 31, 2008. Authentix is investigating the nature of the claims and misrepresentations in the report to determine proper legal recourse.

The story contains a myriad of factual errors including the technology selection process, the length of the program, pricing specifics and the reason the program was stopped. Indeed the report states that the contract was awarded to UK-based Authentix, when in fact it was also awarded to Swiss-based SGS, the world’s largest certification and inspection firm. SGS provided the overall program management and infrastructure for marking and testing, while Authentix provided the authentication technology system to SGS.

“Statements in the report that there were 'irregularities in the deal,' that the Company’s authentication solution was arbitrarily awarded or that the pricing for the fuel markers was in any way inappropriate are simply false and Authentix challenges IBN to publish any factual information supporting these statements,” said David Moxam, CEO and Chairman of Authentix. Authentix has an international reputation as an upstanding leader in the authentication industry with the highest integrity and takes allegations of inappropriate conduct or behavior seriously.

The claim that Authentix markers can be tampered with commercially is unsubstantiated and sensationalistic reporting. While the Authentix kerosene marking program was in place, nationwide forensic testing and analysis revealed that fuel marker laundering was not occurring anywhere in India. “Along with reporting incorrect information as fact, there’s a big chunk of this story that IBN blatantly ignored,” said Moxam. “What IBN fails to mention is that the kerosene marker program was working. It was effective and not only did it save Indian taxpayers money, it helped ensure that India’s poorest received the kerosene needed for cooking and heating. The fact that there is no marking program in place right now means that those involved in the illicit fuel trade are having a field day.”

Indeed, in an affidavit filed before the High Court of Delhi in January 2009, an official with the Ministry of Oil and Gas stated, “the kerosene marker system was indeed an effective and efficacious means of preventing adulteration.” The official goes on to describe the marker system as “very successful.”

Thanks to the marking program, some 1,000 retail outlets illegally selling road fuel adulterated with government-subsidized kerosene were identified. Diesel sales in India increased during the program, another fact that underscores the success of the program. Now, with no program in place, sales of illegally adulterated road fuel have been increasing. In fact there are a number of recent instances where the poor in the certain parts of India are being deprived of their quota of kerosene.

Authentix has a long-established track record of helping governments recoup billions of dollars that would otherwise be lost to the illicit fuel trade and Authentix welcomes the chance to speak directly with representatives of IBN in an effort to set the record straight.

ABOUT AUTHENTIX

As the global leader in authentication solutions for brand protection and excise tax recovery, Authentix® is on the frontlines of the battle against counterfeiting and smuggling. Authentix offers a wide array of world-class solutions that are based on innovative nano-scale engineering and mass serialization so that brand integrity can be preserved as products move through the supply chain. Authentix’ solutions safeguard consumers from harmful products and prevent profits and tax revenues from being lost to illegal activities, such as terrorism. With clients including Fortune 500 companies and national governments, Authentix has recovered over $5 billion in lost revenues in the last 5 years in the oil and gas, pharmaceutical and medical device, tobacco, spirits, and consumer goods industries. In addition, our expertise in the fields of security documents, currency and homeland security applications helps to protect the very fabric of our society. For more information, please visit www.authentix.com.

Contacts

Authentix, Inc.
US Contact
Cari Weinberg, +1 469-737-4453
Manager, Marketing and Public Relations
cari.weinberg@authentix.com

If you are interested in more information, please look at this White Paper entitled, "The Kerosene Marking Programme in India" authored by representatives of Authentix, SGS, and the Indian Oil Company (IOCL).


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