Norconsult withdraws
from Tanzania
Norconsult AS has decided to wind up the company’s activities in Tanzania. Internal and external reviews of the activities of Norconsult’s partly owned subsidiary in Tanzania have revealed activity that is not in accordance with the company’s Code of Ethics and contracts.
- We do not accept any kind of misconduct or corruption. As a consequence, we cease our activities in Tanzania, says John Nyheim, President of Norconsult.
The misconduct has been revealed through Norconsult’s internal review followed by an external review by PriceWaterhouseCoopers (PwC). It has been established that in the past several irregular cash payments have been made from Norconsult’s partly owned subsidiary in Tanzania, NTZ, totalling approx. NOK 650.000.
- We have brought the irregular activities to an end. NTZ has been put under administration from Norway. The employment of the managing director is being terminated. Finally, we withdraw from Tanzania. Any kind of misconduct and corruption is contrary to all we stand for and believe in. No Norconsult employees have contributed to or known about the irregular payments, says Nyheim.
The review of NTZ was initiated as a result of information from the World Bank concerning suspicion of misconduct in a water and sanitation project in Tanzania where Norconsult was involved in a Joint Venture together with two local partners. Last year it was revealed that in total USD 146 500 had been paid out in cash from the project office in Dar es Salaam, with only petty cash receipts as documentation. The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) has been notified about this.
After becoming aware of the misconduct in Tanzania last year, Norconsult has initiated a string of internal actions.
- Norconsult does a full review of all international activities. The work will be concluded this autumn. If misconduct is revealed, we will act decisively, as we have done in this case. The review is already concluded regarding our activities in Mozambique, where no misconduct was revealed, says Nyheim.
Norconsult cooperates with the World Bank in the fight against corruption.
- Norconsult wants to assist the World Bank and other lenders in ensuring that future lending projects remain free from the taint of fraud and corruption. We consider that the best way to do it is to participate in this market according to laws, contracts and our own Code of Ethics, and to continue to deliver good performance in projects after winning them in fair competition. Due to what we have now revealed in Tanzania, however, we see no alternative to withdrawal. We must make a clean break to demonstrate our attitude regarding this way of doing business, says Nyheim.
Norconsult is also reviewing the internal procedures for evaluation of cooperating parties, bidding, contracting, execution, financial control and accounting in order to prevent corruption in connection with our assignments. In 2005 the company started an update of its Code of Ethics. They are now approved and implemented through an extensive process in the organisation.
Norconsult has notified ØKOKRIM and other relevant Norwegian authorities about the decision to close down operations in Tanzania.
For further information, please contact:
John Nyheim, President & CEO +47 67 57 10 00
Source: Norconsult.
- We do not accept any kind of misconduct or corruption. As a consequence, we cease our activities in Tanzania, says John Nyheim, President of Norconsult.
The misconduct has been revealed through Norconsult’s internal review followed by an external review by PriceWaterhouseCoopers (PwC). It has been established that in the past several irregular cash payments have been made from Norconsult’s partly owned subsidiary in Tanzania, NTZ, totalling approx. NOK 650.000.
- We have brought the irregular activities to an end. NTZ has been put under administration from Norway. The employment of the managing director is being terminated. Finally, we withdraw from Tanzania. Any kind of misconduct and corruption is contrary to all we stand for and believe in. No Norconsult employees have contributed to or known about the irregular payments, says Nyheim.
The review of NTZ was initiated as a result of information from the World Bank concerning suspicion of misconduct in a water and sanitation project in Tanzania where Norconsult was involved in a Joint Venture together with two local partners. Last year it was revealed that in total USD 146 500 had been paid out in cash from the project office in Dar es Salaam, with only petty cash receipts as documentation. The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (ØKOKRIM) has been notified about this.
After becoming aware of the misconduct in Tanzania last year, Norconsult has initiated a string of internal actions.
- Norconsult does a full review of all international activities. The work will be concluded this autumn. If misconduct is revealed, we will act decisively, as we have done in this case. The review is already concluded regarding our activities in Mozambique, where no misconduct was revealed, says Nyheim.
Norconsult cooperates with the World Bank in the fight against corruption.
- Norconsult wants to assist the World Bank and other lenders in ensuring that future lending projects remain free from the taint of fraud and corruption. We consider that the best way to do it is to participate in this market according to laws, contracts and our own Code of Ethics, and to continue to deliver good performance in projects after winning them in fair competition. Due to what we have now revealed in Tanzania, however, we see no alternative to withdrawal. We must make a clean break to demonstrate our attitude regarding this way of doing business, says Nyheim.
Norconsult is also reviewing the internal procedures for evaluation of cooperating parties, bidding, contracting, execution, financial control and accounting in order to prevent corruption in connection with our assignments. In 2005 the company started an update of its Code of Ethics. They are now approved and implemented through an extensive process in the organisation.
Norconsult has notified ØKOKRIM and other relevant Norwegian authorities about the decision to close down operations in Tanzania.
For further information, please contact:
John Nyheim, President & CEO +47 67 57 10 00
Source: Norconsult.
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