SCA: Audits Clear Representatives From Wrongdoing

By Christina Zander

STOCKHOLM--Two audits into alleged misuse of resources at Svenska Cellulosa AB (SCA-B.SK) have found that representatives of the Swedish hygiene product and paper company "acted in compliance with Swedish law and the company's policies," SCA said Wednesday.

The audits also conclude that there are no grounds to make financial claims against individuals, the company said.

The Swedish daily SvD Naringsliv has made several allegations over recent months about personal use of SCA's corporate jet by then SCA chairman Sverker Martin-Lof and other executives.

The allegations led to the departure of Mr. Martin-Lof, a powerful figure in the Swedish business world, and of SCA's chief executive Jan Johansson. Mr. Johansson was replaced by Magnus Groth this year.

Mr. Martin-Lof also stepped down as chairman in Swedish investment giant Industrivarden (INDU-A.SK) and from the boards of several of its portfolio companies in one of the biggest shake-ups of corporate Sweden in decades. In addition to his chairmanship at Industrivarden, Mr. Martin-Lof gave up his roles as chairman of both SCA and steelmaker SSAB AB (SSAB-A.SK), the role of vice chairman of Handelsbanken (SHB-B.SK) and Ericsson (ERIC), and a board member at Skanska (SKA-B.SK).

Two audits, one by the accounting firm PwC, which was appointed by the shareholders, and another set up by SCA's board from Svante Forsberg, a public accountant at Deloitte, and Johan Munck, former Justice of the Supreme Court, have ruled that neither Swedish law nor company policy has been broken, the company said.

However, the latter of the two audits said that even if no company policies was violated, SCA's policy regarding business travels has been "generous."

An investigation by Sweden's national anti-corruption unit into any possible misuse of SCA's corporate jet is continuing.

Write to Christina Zander at [e-mail]

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