Yara wins Ethiopian contracts after handing out prize (Norway - corruption alert)

www.aftenposten.no ^ | 03 Jan 2006, 10:12 | Nina Berglund

[Kurt_Hectic]

Yara wins Ethiopian contracts after handing out prize

Oslo-based Yara International, one of the world's largest fertilizer makers, has won some major contracts in Ethiopia, just three months after it awarded a controversial prize to Ethiopia's prime minister. Yara boss Thorleif Enger (left) awarded a prize and USD 200,000 to controversial Ethiopian president Meles Zenawi. Yara said it wanted to honor Zenawi's contribution to the African Green Revolution.

PHOTO: HEIKO JUNGE/SCANPIX

Protesters outside the Oslo Concert House didn't think Ethiopia's president deserved the prize.

PHOTO: HEIKO JUNGE/SCANPIX

Related stories: Yara ponders ship sale - 22.12.2005 Yara establishes African prize - 04.05.2005 Hydro spin-off opens well - Statoil-Hydro merger has political backing - Norwatch, a news service backed by the human rights organization Framtiden i våre hender (Freedom in our Hands), reported Tuesday that parts of the contracts are worth around NOK 95 million (USD 14.2 million). Yara was granted the contracts after a bidding round in December, according to Norwatch.

Three months earlier, Yara awarded a prize for good leadership and USD 200,000 to Ethiopian Prime Minister Meles Zenawi. The awards ceremony at Oslo's Concert House in September attracted a noisy demonstration outside, and Yara's decision to honor Zenawi was harshly criticized by such organizations as Amnesty International.

That's because Zenawi is accused of widespread human rights violations in Ethiopia. As many as 40,000 of Zenawi's opponents are believed to have been arrested in the past three months, and the European Union last week halted the payment of USD 375 million in foreign aid to the country.

"The (prime minister) is losing more and more of his international friends, and clearly wants to hold on to those he has," Kjetil Tronvoll, a researcher at the University of Oslo's Center for Human Rights, told news bureau NTB.

Tronvoll, an expert on Ethiopia, said Yara has "a moral responsibility" to be careful in its business dealings in Ethiopia, "because there are such massive human rights violations in the country."

Tronvoll noted there's reason to believe that distribution of fertilizer is used as a means of wielding political power by the authorities.

'Speculation' Yara's communications director Arne Cartridge called that "speculation" and downplayed any connection between Yara's new fertilizer contracts in Ethiopia and its award to Ethiopia's prime minister.

Cartridge stressed that Yara, formerly a part of industrial concern Norsk Hydro, has delivered fertilizer to Ethiopia for years. He called the new contracts "standard," and said Yara's sales to Ethiopia make up about a sixth of the country's total need for fertilizer.

Cartridge conceded that Yara was aware of the situation in Ethiopia when Zenawi was awarded his prize. "It's clear there are major challenges (in Ethiopia)," he told NTB. "We'll let the future determine whether it was the proper decision."

[Kurt_Hectic]

Norway used to think of itself as a snow-white non-corrupted player in the bussiness-world, but I think there is a lot of this going on. They probably have to do it to get the contracts, and with the massive effort put down by the norwegian oil biggies Statoil and Hydro in Africa and Kaukasus this is probably the tip of the iceberg.

[Kurt_Hectic]

Related story:

Corruption seeping into Norwegian life

Norway used to pride itself on being relatively free of fraud and bribery, but that's clearly changed. A string of recent scandals has left eight of 10 Norwegians thinking that corruption is fairly common, and only one in 10 thinks the authorities have the ability to crack down on it.
A survey conducted by research firm Opinion for newspaper Aftenposten provided some startling results, but the head of a local anti-corruption group thinks they're realistic, not cynical.

"We've done similar research that shows the same numbers, so the material speaks for itself," said Jan Borgen of Transparency Norge. He's not surprised that fully 78 percent of those questioned in the Aftenposten survey believe that fraud and bribery occur either "to a high degree" or "to some degree" within the public sector.

The head of Norway's economic crimes agency (Økokrim) isn't surprised by the survey results either. "We've said ourselves that corruption occurs on a much wider scope than we're able to reveal," said Trond Eirik Schea of Økokrim. He added that investigation of specific cases has shown that many people were aware that corruption was taking place, but didn't blow the whistle.

Bribery and fraud has occurred everywhere from state oil company Statoil to a local waterworks department north of Oslo to the Norwegian Red Cross. Hospitals have been hit by corruption scandals, while the situation within private business remains unclear. Schea urges workers, distributors, customers or anyone suspecting bribery to tip investigators immediately.

"The survey results show, in my opinion, that confidence in the public sector is frayed," said Schea.

Aftenposten English Web Desk
Nina Berglund

[FreePaul]

Norway used to think of itself as a snow-white non-corrupted player in the bussiness-world,...

They may have thought of themselves that way but their actions never supported that position. I've worked with and for Norwegian companies and Norwegian owned companies. Bribery and payoffs were standard business practices with individuals, companies and government representatives. Many of those I worked with joked about the underhanded ways to get things done there.