Tuesday, August 16, 2016

Earlier Kongsberg sales manager accused of financial fraud – Aftenposten

The indictment includes bottling companies for approximately 180 million or more, disguised as payments to agents and a subcontractor, says Norwegian authorities.

ØKOKRIM conducted in February 2014 raid in Kongsberg group premises in Asker and Kongsberg, and charged the company and the employees for corruption.

the former sales director will not comment on the defendant told Aftenposten.

Kongsberg’s shares rose immediately over 1 percent on the Oslo stock Exchange after the news that the case against the listed company is dismissed. The recovery was short-lived and was quickly turned to continued price declines. At 10 o’clock the share had fallen 3.5 percent.

Since the end of Kongsberg shares fell over 10 percent.



Unable corruption

Norwegian authorities have since raid investigated suspicions of serious corruption related to the supply of communications equipment from Kongsberg group of government agencies in Romania for the period 2000 to 2008.

the subsidiary Kongsberg Defence and Aerospace sold on several occasions from 1999 to 2006 communications equipment to the Romanian authorities for a total of 1.46 billion.



Norwegian authorities in a press release that the investigation uncovered extensive financial fraud, money laundering and tax evasion, but they found no basis to prosecute for corruption.

Chairman: Correct decision

ØKOKRIM`s decision came not surprisingly, says Chairman Finn Jebsen in Kongsberg group Aftenposten.

– We welcome the thorough review that Norwegian authorities have been made and that there is no evidence of corruption, he said.

the former sales director who is accused of adultery, was dismissed last year.

– We are looking very seriously at it that have emerged during the investigation. We will closely monitor the further handling of this matter, says Jebsen.



Hoping for a limited adverse effect

He said the case and the investigation has been a burden for the company.

– Since the conclusion is that it is not found grunnnlag to prosecute companies, the damage is probably very limited, says the chairman.

Kongsberg group oriented Ministry of Industry representing the state as the principal owner of the company, about the outcome of ØKOKRIM`s investigation. Jebsen has not had other contact with economics minister Monica Mæland at this time.

Should former CEO Qvam have notified Norwegian authorities about suspicions of corruption ?

– The Board has found no grounds for any such criticism. My assessment is the same.

Have you considered your position as chairman?

– No, partly because the circumstances disclosed happened long before my time as chairman.

“A challenging case”

Jebsen took over as chairman in 2005. the bulk of the matters investigated in relation to actions which occurred until 2004, Jebsen.

in an announcement made by Kongsberg group emphasizes Jebsen that in their opinion has ØKOKRIM`s investigation been a thorough process where all facts of the case are discussed.

– the decision not to bring an indictment is for our opinion correctly, says Chairman of the Kongsberg group, Finn Jebsen, in a press release.

the case against Kongsberg group was thus dismissed by evidence.

– the case has been demanding, but during the entire investigation period, we focused on our partners, customers and suppliers. We are pleased that the corruption charges are dropped and that we can put this behind us, adding Jebsen.



Famous corruption forged mind from before

When Norwegian authorities took action, was already familiar with the management of Kongsberg group to corruption forged mind. The company put the consultancy PricewaterhouseCoopers (PwC) to examine the matter, but decided to lay aside the report because they only found “circumstantial” and all traces stopped in tax havens.

Qvam was CEO from 2008 to June this year . He has previously been criticized for not notifying the police earlier.

– After two and a half years of investigation, we are satisfied and happy outcome, although perhaps not unexpected, says Qvam Aftenposten .

Qvam say they have had a good and thorough cooperation with law enforcement authorities in the investigation.

the trial against the former Sal’s boss will be scheduled in Asker and Bærum District Court. It probably comes before the court first half of 2017.

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