Water Company Pays off Iraq Bribe Penalty

Water and gas supply and treatment company AVK Holding has paid a total of 1.2 million Danish crowns to the Public Prosecutor for Serious Economic Crime (SOK) for violations relating to the UN Oil-for-Food Program scandal, Copenhagen Post reported on 15 February. AVK reached a settlement with SOK over the violations, which included accusations of bribery.

The company paid 875,000 crowns penalty plus statutory interest of 325,000 crowns. Prosecutors had initially demanded a far greater amount in the form of confiscation of AVK Holding’s profits received through an order to Iraq 8 years ago.

But it was AVK’s executive management itself that reported the violations, after one of its employees in Dubai illegally entered into an agreement with an agent in Jordan to pay bribes in connection with the order.

AVK is the second company in the past week to settle its Oil-for-Food Program charges.

Pharmaceutical company Leo Pharma paid 8.5 million crowns to SOK previous week to close its part in the case, where 21 Danish companies in all were charged.

(New Europe)

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