As one of 21 Danish companies implicated in the Oil for Food scandal, Leo Pharma has decided to close its case through a penalty fee
Pharmaceutical company Leo Pharma has entered into an agreement with the Public Prosecutor for Serious Economic Crime (SØK) in order to avoid trial in the wake of the Oil for Food scandal, according to a press release from the company.
Leo Pharma said it has paid 8.5 million kroner to close its part in the case, in which the company was accused of being one of more than 2000 businesses that abused the aid programme through bribes or other illegal activities to the Saddam Hussein-led Iraqi government.
However, the press release from Leo Pharma states that the payment is not tantamount to an admission of guilt for any violations.
‘After careful consideration, we have decided to settle with SØK so the Oil for Food affair will not overshadow the many positive developments currently taking place at Leo Pharma,’ stated the company’s president and CEO, Gitte Aabo, in the press release.
‘With the settlement we have avoided a long and exhausting trial at a time when the company needs to focus its efforts and energies on expansion.’
The UN's Oil for Food programme gave companies the opportunity to trade with Saddam Hussein's boycott-stricken Iraqi regime. But investigations revealed in 2005 that a large number of companies worldwide had abused the relief program by paying bribes and kickbacks to the Iraqi regime.
Of the 2253 companies accused of committing violations, 21 were Danish and, in addition to Leo Pharma, included heavyweights such as Novo Nordisk, Grundfos, William Demant and FLSmidth.
Police were forced to abandon proceedings against a number of businesses in the scandal, and since last autumn, 11 of the 14 companies with active cases remaining chose to enter into payment settlements with SØK – including Leo Pharma with its agreement this week.
The Copenhagem Post
