Yara publishes findings from unacceptable payments investigation

29 June 2012 12:24  [Source: ICIS news]

LONDON (ICIS)--Yara International has published the main findings from an investigation into unacceptable payments, including a $1m (€800,000) payment in 2007 to a consultant in India, the Norwegian fertilizer producer said on Friday.

Yara said that on three separate occasions in 2011 and 2012 it had “communicated possible irregularities”.

In March, Yara uncovered unacceptable payments from a former joint venture in Switzerland through an investigation of possible corruption, which prompted the company to initiate further investigations.

The findings, in addition to the $1m payment in 2007, include unacceptable offers of payment to a consultant related to Yara's interest in Libyan Norwegian Fertilizer Company (Lifeco) and a number of payments over several years from Swiss-based fertilizer company Balderton, said Yara.

The company added that payments from Balderton – which Yara bought in 2010 – which have no commercial basis, have also been uncovered.

This process began when we discovered irregularities, which we reported to [the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime] Okokrim. It is disappointing to confirm that unacceptable payments have been made from Yara, but I am nevertheless satisfied with the way this matter has been handled, said CEO Jorgen Ole Haslestad.

In May, two members of Yara’s corporate executive management team were charged in relation to the investigation.

($1 = €0.80)

By: Leigh Stringer
+44 208 652 3214

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