Statoil ASA board supports CEO amid corruption charges
By OGJ editors
HOUSTON, Sept. 16 -- The Statoil ASA board criticized Statoil CEO Olaj Fjell for a $115 million business development contract with Iranian firm Horton Investment, but the board also said Fjell remains the "person best suited to take Statoil forward."
Last week, the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) accused Statoil of corruption regarding the contract, which was made in June 2002 to strengthen Statoil's business development in Iraq (OGJ Online, Sept. 12, 2003).
"It is the board's opinion that Fjell has shown decisiveness and has delivered good results during his 4 years as head of the group. He enjoys respect both within and outside Statoil," and "retains the confidence of the whole board of directors," a Statoil news release said.
The board said it will lend "all possible assistance" to Økokrim, and emphasizes that complete clarification of this case was in Statoil's interests. The board chairman apologized to the directors for not informing them collectively of the contract.
The board emphasized that Statoil's international ambitions will be upheld with high ethical standards.
"It is the opinion of the board that the group can succeed internationally without becoming involved in activities which are in a borderland as regards ethical norms and rules," the release said.
The administration presented a plan of action supported by the board, which said it will closely follow the following elements:
-- External auditing of all existing contracts with advisers for international business development.
-- Quarterly reporting to the board on the development of the existing as well as new contracts.
-- Monitor political risk and ethical dilemmas associated with Statoil's involvement in countries with different sociopolitical systems.
-- Improve training in ethics and handling ethical dilemmas.
-- Strengthen the direct line of reporting from the internal auditor to the board.