DOW JONES NEWSWIRES
Two executives at Norwegian fertilizer company Yara
International ASA (YAR.OS) have been held in connection with a
corruption investigation, Norway's economic crimes unit said
Friday, the latest blow for the company that two months ago
disclosed its third case of possible corruption in a year.
Chief Financial Officer and head of strategy Hallgeir Storvik
and head of upstream Tor Holba, both part of Yara's nine-member
management team, were detained for questioning in connection with
an investigation that started in 2011, Yara said in a
statement.
The Norwegian National Authority for Investigation and
Prosecution of Economic and Environmental Crime, known as Okokrim,
said the purpose of the move is to question the executives.
"I am surprised by this development," Yara Chief Executive
Jorgen Ole Haslestad said. "However, Yara has had a close
co-operation with Okokrim throughout the process and will continue
this in this new phase. It is important for us to see this process
through to its conclusion and we will now await Okokrim's further
investigation."
Neither the prosecutor nor a spokesperson for Yara were
immediately available for further comments.
Yara has in the past year disclosed three cases of possible
corruption. In April last year, the company became aware of
possible offenses related to its ownership in Libyan Norwegian
Fertilizer Co., known as Lifeco. The investigation is continuing,
having been extended the following month to cover other possible
incidences of corruption, which may include India.
In March, Yara unveiled a third case of possible corruption, as
it uncovered unacceptable payments from Yara's subsidiary Balderton
Fertilisers SA in Switzerland. According to the economic crimes
unit, the case in Switzerland has no connection to India and
Libya.
Shares in Yara fell sharply on the news and were at 1325 GMT,
trading 6.7% lower, or NOK17.30, at NOK232.80, underperforming the
broader Oslo index.
-By Anna Molin, Dow Jones Newswires; +46 8 545 131 03;
anna.molin@dowjones.com