Norwegian firm Yara fined $48 mn for corporate irregularities

Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Okokrim) has imposed penalty of totalling NOK 295 million (about $ 48.38 million) on Yara International for alleged corporate irregularities. This relates to agreements dating back to 2007 and earlier. The Board of Yara International ASA has acknowledged guilt and accepted the judgement.
 
The fine of NOK 270 million is related to historical irregularities linked to the establishment of Lifeco (Libya), an unrealised project in India and Yara’s activities in Switzerland. In addition Okokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries.
 
In April 2011, Yara International ASA launched an external investigation and concurrently notified Okokrim of possible irregularities. The main findings of the external investigation were published in June 2012.
 
“This is a serious case. 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, President and Chief Executive Officer, Yara.
 
Haslestad added, “The incidents in question took place several years ago. We have since invested considerably in our compliance processes, based on our clear zero tolerance for corruption. Most importantly, we have worked with culture and attitudes to ensure that such incidents do not occur in the future.”
 
“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 ASA.