Yara Says Investigation Confirms Unacceptable Payments

Norwegian fertilizer producer Yara International ASA 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.

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.

(Source: Fox  Business)