A CONTINUING battle between an Indian entrepreneur, Pankaj Oswal, and a Norwegian fertiliser giant, Yara International, hits the Federal Court today over allegations that an independent auditor was denied access to the accounts of their multibillion-dollar investment, Burrup Fertilisers.
''Yara has lodged an application with the Federal Court of Australia seeking an order requiring Burrup to allow the inspection,'' the company said yesterday.
Alleged misuse of funds at Burrup, a charge which Mr Oswal strongly denied this week, was not the only issue cited by Yara yesterday in its reasons for taking legal action.
Yara said the inspection is needed to address a number of concerns including Burrup's failure to prepare and file financial reports, ''unexplained'' high cost levels within the company, and ''a persistent lack of transparency and appropriate adherence to corporate governance principles'' by Mr Oswal as company chairman and managing director.
"This action is being taken in the interests of Burrup and is designed to get to the bottom of what exactly is happening inside the company,'' said Yara's chief financial officer, Hallgeir Storvik.
''A situation where a public company has failed to prepare and file a financial report within the time prescribed is intolerable and we will vigorously pursue our rights.''
Mr Oswal said Yara's latest claim is ''false and deliberately misleading'' as Burrup gave its consent for the auditor to look at the books this coming Monday. Mr Oswal said he agreed to Yara's request despite it being in contravention of the process the partners had previously agreed to.
Yara countered that it had been turned away last week when it sought to exercise its rights and said ''the so-called 'permission' given to Yara is subject to conditions which effectively prevent Yara exercising its rights.'' A Burrup spokesman said the only condition attached to accessing the accounts was a confidentiality agreement.
The information which has come to light on Burrup's financial performance has not been good. Yara's third-quarter results showed Burrup made a loss for the first nine months of this year, although a modest profit was recorded in the September quarter.
Earlier this week, Mr Oswal strongly denied there had been any misuse of Burrup funds.
