Ex-Vestas CFO faces fraud charges - report

Jul 23, 2013 - Denmark’s Public Prosecutor has charged with fraud the former chief financial officer (CFO) of Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS), Henrik Norremark.

Norremark has been accused of acting beyond his authority in 2011, when he concluded two deals for the purchase of Chinese turbines in India on behalf of the company without informing the board or the company’s CEO Ditlev Engel, Danish daily Ekstra Bladet said yesterday citing a deputy public prosecutor as saying.

The two deals, called the Project Dragon, did not go through Vestas' contract approval board and led to the company assuming liabilities worth some DKK 130 million (USD 23m/EUR 17.4m) without receiving any turbines.

More precisely, the two deals involved a waiver by Noerremark of two debt agreements with Indian company RBB that totalled DKK 33 million, and a DKK 108 million investment in a possible project in India.

The board of directors of Vestas dismissed Norremark from the position of CFO in October 2012 and handed the case to the Public Prosecutor in December.

(DKK 1.0 = USD 0.177/EUR 0.134)

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