By Kjetil Malkenes Hovland
OSLO--Norwegian fertilizer producer Yara International ASA
(YAR.OS) confirmed Friday that it had made "an unacceptable
payment" of $1 million in India in 2007, as well as "unacceptable
offers of payments" in Libya, after an internal investigation into
possible irregularities.
"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 Yara chief executive, Jorgen
Ole Haslestad, in a statement.
The company confirmed that "an unacceptable payment" of $1
million was made in 2007 to a consultant in India, related to
negotiations with Krishak Bharati Cooperative Ltd., or Kribhco.
The company said "unacceptable offers of payment to a consultant
are documented," related to the establishment of Libyan Norwegian
Fertilizer Co., or Lifeco, in Libya. The company said it didn't
know if the payment was actually made.
At 0800 GMT Friday, Mr. Haslestad will present the results of an
internal investigation into the irregularities by Norwegian law
firm Wiersholm.
The company said a number of payments, totaling $15 million,
have been uncovered from the company's joint venture Balderton
Fertilizers SA in Switzerland to persons employed by or associated
with suppliers to Yara or its subsidiary Balderton, but didn't say
whether these payments were also unacceptable. Payments with no
commercial basis have also been uncovered, it said.
Yara said it has notified the Norwegian National Authority for
Investigation and Prosecution of Economic and Environmental Crime,
known as Okokrim, about "possible irregularities" on three separate
occasions in 2011 and 2012.
Yara said in a statement that it won't hold any persons or
companies responsible for the corruption before the Okokrim has
concluded its investigations. Okokrim has had access to more
evidence than Wiersholm, it said.
-Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@dowjones.com