Norsk Industri Scandal: Ex-Director Claims She Was Misled

OSLO – Former Norsk Industri chief Stein Lier-Hansen repeatedly provided false information to colleagues and superiors regarding expenses related to lavish hunting trips, a court heard this week. The revelations came during testimony from Carla Botten Verboven, the organization’s former organizational director, who approved Lier-Hansen’s invoices and travel expenses for years.

Verboven testified that Lier-Hansen presented lists of attendees and detailed explanations for expenses related to hunting lodges and travel, claiming the trips involved discussions of important issues for Norsk Industri ahead of the 2021 UN Climate Change Conference in Glasgow. However, Lier-Hansen has since admitted that many of the individuals he claimed were present did not actually participate in the hunts.

“I perceive that there is a significant discrepancy between what was written here and reality,” prosecutor Bård Thorsen stated, referencing Lier-Hansen’s previous explanations. “Do you have a comment on that?”

“For me, this appears, if what you say is correct, as a personal betrayal,” Verboven responded.

Lier-Hansen has acknowledged providing inaccurate information to Verboven, stating he did not believe she was aware he was subletting hunting rights and pocketing the difference. “It was not good, no,” Lier-Hansen said earlier in the trial, admitting he made it difficult for Verboven to properly scrutinize the expenses.

Verboven described Lier-Hansen as a powerful figure within Norwegian industry, receiving positive feedback from both the board and members of Norsk Industri. “He achieved good results in the area of ​​industrial policy and was described as one of Norway’s most powerful men,” she told the court. “He was a traditional leader – there was no doubt who was the boss in Norsk Industri.”

The court heard that Verboven, as organizational director, was responsible for approving expenses after they had been reviewed by the accounting department. Invoices and supporting documentation were kept in a folder on Lier-Hansen’s desk. She stated she did not consider it her role to question the managing director’s professional judgment regarding the necessity of representational expenses.

Verboven also testified that she was unaware that some of the invoices paid by Norsk Industri were also paid directly to Lier-Hansen by other parties. When asked how she would have reacted if she had known, she stated she would have taken the same action she did in 2023 – initiating an expanded audit.

“It was a difficult decision,” Verboven said. “To ask for an expanded audit is a big step from a subordinate against his superior. Emphasize enough how difficult it was.”

The testimony revealed that in September 2023, Verboven and Lier-Hansen were summoned to a meeting with NHO (Confederation of Norwegian Enterprise) CEO Ole Erik Almid and director Nina Melsom. The meeting followed media reports of an insider trading scandal involving a former Norsk Industri employee. Almid reportedly informed them of a potential upcoming media story concerning Norsk Industri, specifically related to representation expenses involving hunting and fishing trips organized by Lier-Hansen.

Following the meeting, Verboven and NHO’s financial director, Arne Tyholt, attempted to compile an overview of the costs associated with the hunting and fishing trips. Two days later, they were called to another meeting with NHO leadership to follow up on the matter. Verboven stated that during this second meeting, Lier-Hansen was unclear in his explanations.

“When we went through the costs of hunting and fishing in 2023, I got the feeling that the map and the terrain did not quite match,” she said. “When Arne Tyholt probed further and it still appeared unclear, I made the difficult decision to request a review of the bills. I only had one tool left.”

Verboven explained that requesting the audit was a difficult decision because she did so without informing either the board chairman or Lier-Hansen himself.

The court also heard about invoices from a now-deceased consultant who billed Norsk Industri a total of 4.2 million kroner. These expenses are part of the corruption charges against Lier-Hansen, as he allegedly received 1.9 million kroner from the consultant, explaining it as a loan and collaboration on selling *rakfisk* (fermented fish). Previous testimony revealed that the consultant delivered assignments verbally to Lier-Hansen, which was considered unusual by former board members.

Verboven stated she did not question the validity of the consultant’s invoices, stating she valued the information provided regardless of the form it took. She also testified that she assumed Lier-Hansen was adhering to Norsk Industri’s ethical guidelines.

When questioned about whether she independently verified whether the activities billed by Lier-Hansen were within the organization’s ethical framework, Verboven responded, “I assumed that the guidelines were followed.” She added that she did not believe it was her responsibility to verify compliance.

The trial continues, with further testimony expected from Arne Tyholt and other witnesses.