Oslo — Yara International ASA on June 29 revealed the results of an investigation by the law firm Wiersholm, which it had hired in April, 2011, regarding allegations of irregularities at the company. Findings included: documented unacceptable offers of payment to a consultant related to the establishment of Libyan Norwegian Fertilizer Co. (Lifeco), although the completion of the actual payment is not documented; an unacceptable payment of US$1 million in 2007 to a consultant in India, related to negotiations with Krishak Bharati Cooperative Ltd. (Kribhco); and a number of payments over several years from the company Balderton in Switzerland, totalling approximately $15 million. The payments were made to persons employed by or associated with companies that are suppliers to Yara or Balderton. Payments from Balderton that have no commercial basis have also been uncovered. “This process began when we discovered irregularities which we reported to Økokrim (Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime). 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 Jørgen Ole Haslestad, Yara president and CEO. “We have invested considerably in our long-term work to ensure compliance with Yara’s ethical standards, and we have continued to strengthen our Ethics & Compliance function since its establishment in 2009. At Yara we follow a self-imposed, high ethical standard in our work, and I want to underline that there is zero tolerance of corruption in Yara.” Yara said it has cooperated with Økokrim throughout the process, and that until the Økokrim investigation is completed, Yara cannot conclude on questions related to responsibility of individuals or individual companies. It noted that Wiersholm had access to a more limited body of evidence than Økokrim.
Transparency Across the Fertilizer Value-Chain