By Dominic Chopping
Norwegian chemical company Yara International ASA (YAR.OS) said
Friday that its company-appointed law firm Wiersholm has concluded
its investigation into suspected irregular payments and it has
confirmed such payments were made.
MAIN FACTS:
-In Apr. 2011 Yara appointed Wiersholm to conduct a broad
external investigation, after notifying the Norwegian National
Authority for Investigation and Prosecution of Economic and
Environmental Crime (Oekokrim) of possible irregularities.
-The Wiersholm investigation is now concluded, providing Yara
with confirmation of the previously communicated areas of
concern.
-Through the Wiersholm investigation, with its limitations, Yara
has received confirmation of these earlier findings.
-Unacceptable offers of payment to a consultant are documented,
related to the establishment of Libyan Norwegian Fertilizer Company
(Lifeco). The completion of the actual payment is not
documented.
-An unacceptable payment of $1 million in 2007 to a consultant
in India is documented, related to negotiations with Krishak
Bharati Cooperative Limited (Kribhco).
-A number of payments over several years from the company
Balderton in Switzerland have been uncovered, totalling
approximately $15 million. The payments have been made to persons
employed by or associated with companies which are suppliers to
Yara or Balderton.
-Payments from Balderton which have no commercial basis have
also been uncovered.
-Until the Oekokrim investigation is completed, Yara cannot
conclude on questions related to responsibility of individuals or
individual companies. Wiersholm have had access to a more limited
body of evidence than Oekokrim.
-Shares closed Thursday at NOK253, valuing the company at
NOK71.9 billion.
-Write to Dominic Chopping at dominic.chopping@dowjones.com