The former chief financial officer with Vestas will not face criminal charges over transactions in India, a Danish state prosecutor said on Wednesday.
Wind turbine maker Vestas has claimed that former CFO Henrik Norremark made two agreements in India in the autumn of 2011, which neither the board nor then chief executive Ditlev Engel knew about, and which could cost the company up to 18.9 million euros ($21.2 million).
The company passed the case to the state prosecutor, also known as the Fraud Squad, in December 2012 as it said it had not been able to find out what the money had been spent on or why the transactions had been made.
“As was the case for Vestas, the Fraud Squad has been unable to determine what happened to the money after it was transferred to India,” Vestas said in a stock exchange announcement on Wednesday.
The Fraud Squad said in a separate statement that its investigation had not uncovered evidence to substantiate claims that a criminal offence had occurred.
“Therefore, we have completed the investigation and rejected the charges against the former chief financial officer,” the Fraud Squad said.
Vestas still believes Norremark, who denies wrongdoing, significantly exceeded his powers by entering into the agreements and said the civil cases between the company and Norremark in Denmark and in India were unaffected.
Norremark said in a statement sent to Reuters by his lawyer that the case never should have been handed over to the Fraud Squad and that the casework had taken too long.
“The fault lies first and foremost with Vestas, its board members and legal advisers, who from the beginning knew that their accusations and claims against me were untrue,” Norremark said in the statement.
He also said that the cases against him in Denmark and India have been filed because of personal disputes. ($1 = 0.8921 euros)