Vestas reveals police investigation into Norremark deals

DENMARK: Vestas has revealed it has brought in the Danish fraud squad over the actions of former chief financial officer Henrik Norremark.

Former Vestas CFO Henrik Norremark
Former Vestas CFO Henrik Norremark

Last year Vestas revealed that Norremark, who was sacked from Vestas at the beginning of 2012, had initiated a series of deals in India without board approval. It said these could cost the company EUR 18.9 million.

In a company announcement, Vestas said it had handed details of the case to the state prosecutor for serious economic and international crime.

It said the EUR 18.9 million relates to two orders. One involved the ending of two debt agreements with an Indian company worth a total of EUR 4.4 million. The other was an EUR 14.5 million investment with the same company for a potential project in India.

Vestas said: "The management of the company in the Indian group, to which the money was transferred has until now not been able, or willing to explain to Vestas which assets Vestas was supposed to have received in return for the transferred amount."

It added the investigations proved that the board and the CEO Ditlev Engel knew nothing of the transactions.

Vestas chairman Bert Nordberg said: "The investigations were completed without the lawyers or the auditors being able to find any further clarification of what the money was spent on.

"On this background, the board requested the fraud squad to initiate an investigation and, at the same time, we informed the former CFO that the board intends to hold him responsible for the losses which the company may suffer due to his transactions."

Norremark had been CFO since 2004. However, at the beginning of the year he was made deputy chief executive. He only held the role for a number of weeks before he left Vestas.

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