Norway Corruption Report

There is a low risk of corruption in the Norwegian police force. The reliability of police services to protect companies from crime is considered very high (GCR 2017-2018). A public survey suggests that corruption is very rare in the country’s police services (GCB 2013). The Norwegian government has effective mechanisms to investigate and prosecute corruption among police officials (HRR 2017). Norway’s local police districts investigate less complex cases of corruption, while large cases of economic crime are handled by a special police and prosecuting unit, Økokrim.

Companies are very unlikely to encounter corruption when interacting with the public administration or when obtaining public services in Norway. Norway’s public administration acts in a predictable way in accordance with the law (SGI 2017). Companies report that it can be somewhat burdensome to deal with government administrative requirements (GCR 2017-2018), but bribery payments almost never occur when obtaining public utilities, business permits or licenses (GCR 2015-2016). Almost one-third of surveyed citizens believe that bribery and abuse are widespread among officials issuing business permits, but none report to have paid bribes to officials in this sector (European Commission, Feb. 2014). Norway’s regulatory system is on par with the EU (ICS 2017), and regarded as efficient and reliable (SGI 2017). Government decision-making processes are generally inclusive; organized interest have access to and are incorporated into planning and implementation processes (SGI 2017).

Starting a business in Norway is significantly less time-consuming and costly compared to the OECD high income average (DB 2018). Dealing with construction permits is significantly less time-consuming than elsewhere in OECD high income countries (DB 2018).

There is a low risk of corruption in Norway’s land administration. Only a small fraction of Norwegians who had interacted with the land administration claimed to have paid a bribe (GCB 2013). Norway’s legal system protects and facilitates all aspects of property rights (ICS 2017). Accordingly, companies report confidence in the protection of property rights in Norway (GCR 2017-2018). Foreign investors are allowed to own real property, but there are restrictions on certain types of property, including for example mines (ICS 2017). Norway has a number of land consolidation courts which decide both on the division of land (mainly for agricultural purposes) and on real estate disputes (ICS 2017). There are no recently reported cases of unjust or improperly compensated expropriations (ICS 2017).

Registering property is dramatically less time-consuming and costly than the average of OECD countries (DB 2018).

There is a low risk of corruption in Norway’s tax administration. Bribes and irregular payments very rarely occur when interacting with tax officials (GCR 2015-2016). Tax authorities have been active in a number of initiatives to counter tax crimes in the private sector and to enhance international cooperation (OECD 2013). Norwegian law explicitly prohibits the tax deductibility of bribes. A business survey reveals that two thirds of companies believe there is a high chance of being caught by the tax authorities for tax fraud or tax evasion (KRISINO 2017).

Companies in Norway make tax payments at only half the frequency and requiring only half of the time compared to the OECD high income average (DB 2018).

There is a low risk of corruption in Norway’s customs administration. Companies indicate that irregular payments and bribes in customs procedures are rare (GETR 2016). Companies are satisfied with the time predictability and efficiency of the clearance process (GETR 2016). Companies cite burdensome import procedures as one of the most problematic factors for importing (GETR 2016). The time required to comply with import and export procedures in Norway is significantly lower than in other OECD high income countries (DB 2018). See the Norwegian Customs Service for information on customs regulations.

Former police officer Eirik Jensen was sentenced to 21 years in prison for aiding drug smugglers and taking bribes (Euronews, Sept. 2017). Jensen was convicted of aiding a hashish smuggling ring for over a decade (Euronews, Sept. 2017).

Corruption does not hinder business in Norway’s resource industries. Foreign oil companies report there is no discrimination in the award of petroleum exploration and development blocks (ICS 2017). Norway is a fully compliant member of the Extractive Industry Transparency Initiative (EITI), which promotes the transparent publication of revenues and expenses from extractive industries. As a member of the Open Government Partnership, the Norwegian government has also committed itself to improving transparency in the management of oil and gas resources.

In a foreign bribery case, the Norwegian-based fertilizer company Yara International was found guilty of corruption and bribery, and was fined the largest corporate fine in Norwegian history of USD 48 million. Yara had entered into a joint venture with the National Oil Corporation of Libya and the Libyan Investment Authority, creating the Libyan Norwegian Fertiliser Co (Lifeco). During the formation of Lifeco, Yara and Yara’s Swiss affiliates approved several illicit transactions, including the transfer of USD 1.5 million into the Swiss account of the Libyan Oil Minister, Shukri Ghanem. The bribes were masked by overpaying for the fertilizer bought from Libya. Four people involved in the scam have been indicted on criminal charges in Norway, including Yara’s lawyer and former top executive who received a three-year prison sentence (Whistleblower Justice Network, 2015). Yara’s former CEO was ultimately acquitted in late 2016 by a jury in an appeals court (Reuters, Dec. 2016).