Carlsberg partner urges better governance
05 August 2021 | Business
Carlsberg's warring partner in its India joint venture urged the Denmark-based brewer to boost governance standards, saying it has had "grave concerns" for years over operations in the south Asian nation.
Since at least 2019, the partner, Nepal-based Khetan Group, and Carlsberg have been embroiled in a commercial dispute, amid an internal inquiry into the brewer's local practices that sparked a boardroom battle.
In its first public comment since the dispute began, the Khetan Group's holding firm, CSAPL Holdings Pte Ltd urged Carlsberg "to honour its obligations to improve governance and act in the long-term interests of the business".
Suspected governance issues prompted the resignation of Carlsberg India's auditor and the launch of an inspection of its financial accounts by Indian authorities, the joint venture partner added in its statement.
It has previously blamed the auditor's decision to quit last year on "highly disruptive" side-effects of the commercial conflict with its joint venture partner.
Reuters reported the auditor's resignation in November, after the firm, an affiliate of PriceWaterhouseCoopers, had declined for two successive years to give an opinion on the joint venture's financials.-Nampa/Reuters