One of Denmark's largest companies, the brewing giant Carlsberg, is suspected of systematic and extensive corruption and other irregularities in Belarus.
The warnings appear from an internal audit report that was submitted to the brewery's supervisory board and shareholders last spring, and to which Berlingske has been given access.
The new information comes as Carlsberg receives massive criticism for maintaining its billion-dollar business in neighbouring Russia - despite the country's invasion of Ukraine. An invasion that Belarus - and especially the country's longtime president Alexander Lukashenko - actively supports.
Carlsberg has been one of the largest breweries in Belarus since 2006 thanks to the ownership of the local brewery Alivaria.
The audit report has been prepared by Alivaria's audit committee - an internal body that public limited companies in Belarus are required to establish in order to supervise the company.
According to the report, »serious breaches of the rules« have been identified in connection with a comprehensive expansion of Alivaria's brewery in the middle of the capital Minsk.
The project was so suspicious that the report recommends a »thorough review of the entire project«, which should, among other things, investigate »signs of corruption and dishonesty«, the report states, which also warns against the risk of police investigations.
The report also warns of inexplicably large increases in the cost of transportation and huge purchases of commercial equipment such as refrigerators.
The supervisory board and the shareholders »are advised to pay special attention to dealing with corruption risks« from the many »opaque decisions«, it appears from the internal material.
Carlsberg will investigate again
In a written statement to Berlingske Carlsberg states that the brewery already has investigated some of the suspicions without finding evidence of corruption, but that »there were internal processes that had not been adequately followed«.
»It goes without saying that all forms of corruption are completely unacceptable in Carlsberg, so we take cases like these very seriously,« says Christian Wulff Søndergaard, vice president of external affairs in Carlsberg, but emphasises:
»In light of the concerns raised about the case, we will initiate another investigation to double-check the circumstances raised by the inspection report.«
Experts in corruption and auditing see several red flags in the audit report:
»The report is a serious warning that something is completely wrong with the subsidiary,« says Kim Klarskov Jeppesen, professor at Copenhagen Business School, CBS.
He calls the audit report »very thorough« and »extremely critical of local management.«
Lars Johannsen, associate professor and expert in corruption at Aarhus University, believes that the report »calls for an in-depth investigation.«
»Suspicions of corruption and economic crime to this extent pose a huge economic and political risk to Carlsberg. Especially when the sender is the company's own audit committee,« he says.
It is not the first time Carlsberg has been linked to corruption and other shady activities in the company's foreign subsidiaries. In recent years, Berlingske has uncovered bribery in Carlsberg's Indian subsidiary and suspected fraud with taxes in Malaysia.
The new information puts further pressure on Carlsberg's subsidiary Baltic Beverages Holding (BBH), under which both the Belarusian and Carlsberg's extensive Russian business sort.
Despite Russia's invasion of Ukraine Carlsberg has chosen to maintain production in Russia, but now faces huge risks: In response to the West's extensive sanctions against Russia, the country threatens to nationalise foreign companies' activities in the country. An action that will inflict a significant loss on BBH that owns eight large breweries in Russia.
Carlsberg owns 90 per cent of Alivaria. Also the European Bank of Regional Development (EBRD) is a shareholder.
In a short statement to Berlingske a spokesperson from EBRD says that the bank has not been presented to the mentioned irregularities, but that EBRD now will look into the matter and has already approached Alivaria.
Read a longer version of the article here (in Danish).
Do you have knowledge of the story - or similar cases? Contact Berlingske’s journalist Michael Lund at mlun@berlingske.dk or via the encrypted messaging system Signal +45 25 45 62 73.
