Norway’s Yara accepts guilt over unacceptable payments, fined €35.5m

15 January 2014 11:17  [Source: ICIS news]

LONDON (ICIS)--Norway-based Yara International has acknowledged guilt to unacceptable payments dating back to 2007 and earlier and has accepted a fine totalling Norwegian kroner (NKr) 295m (€35.5), the fertilizer major said on Wednesday.

The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Okokrim) fined Yara NKr270m for historical irregularities linked to the establishment Libyan Norwegian Fertilizer Company (Lifeco), an unrealised project in India and a number of payments over several years from Swiss-based fertilizer company Balderton.

In addition, Okokrim fined the company NKr25m related to irregularities regarding earlier phosphate deliveries, the company said.

“Our acknowledgement of guilt and acceptance of a fine reflect that the Okokrim findings are in line with those of our own investigation. The penalty is severe, but we accept it," said Bernt Reitan, chairman of the board of Yara International.

In April 2011, Yara launched an external investigation on the matter and informed the Okokrim of possible irregularities.

The main findings of the external investigation were published in June 2012.

"Both the company's external investigation and the Okokrim investigation has uncovered unacceptable and disappointing behaviour. We have throughout the process cooperated with Okokrim and given them access to all material," said Jorgen Ole Haslestad, Yara president and CEO.

Haslestad said the company is now working towards ensuring that such incidents do not occur in the future.

(€1 = NKr8.32)

By: Deepika Thapliyal
+44 208 652 3214

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