Yara investigation confirms irregular payments in Libya

01 July 2012

Offers of payment made for Norway-Libya joint venture, Lifeco

Norwegian fertiliser group, Yara has concluded an investigation into irregular payments made by the company in Libya, India and Switzerland.

The investigation confirms that offers of payment to a consultant related to the establishment of Libyan Norwegian Fertiliser Company (Lifeco). The completion of the actual payment is not documented, according to a 29 June company statement.

Yara also made an “unacceptable payment” of $1m in 2007 to a consultant in India, related to negotiations with Krishak Bharati Cooperative Limited (Kribhco).

According to the statement, Yara notified the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, about possible irregularities on three separate occasions in 2011 and 2012. The investigation was carried out by Norwegian law firm Wiersholm, which was appointed in April 2011.

Lifeco, a joint venture set up by Yara, state-owned National Oil Corporation (NOC) and the Libyan Investment Authority in 2009, was planning a $2bn upgrade of the Marsa al-Brega nitrogen fertiliser complex. The project was still at the planning stage at the end of 2010. The deal is being investigated by Libyan general attorney.

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