Niko Resources Ltd said on Thursday that Canadian police have launched a formal investigation into allegations that the Canadian oil company or its Bangladesh subsidiary made improper payments to government officials.
The Anticorruption Commission filed charges against former prime minster Khaleda Zia in Dec 2007 for failing to recover millions of dollars in compensation for environmental damage caused by a fire at a Niko drilling site in northeastern Bangladesh in 2005.
The ACC filed a similar case against Sheikh Hasina who came into office for a second term as prime minister just days ago.
"We don't have any specifics ... but we understand that the allegations relate to possible improper payments to public officials in Bangladesh either by Niko or our subsidiary over there," said Murray Hesje, chief financial officer for Calgary-based Niko, which operates mostly in India and Bangladesh.
The oil-gas company has large discoveries offshore India and has exploration properties elsewhere in Asia and Africa.
"We deny that at any time we made any unlawful payment to any public official over there," Hesje said.
The company said the Canadian police have not given it any specifics on the allegations. Canadian police declined to comment.
Niko says it has cooperated with the ACC and that no charges have been laid against the company in Bangladesh.
"They asked us for information and we cooperated," Hesje said. "The Canadian authorities thus far have not asked us for any information and if they do going forward we will cooperate with them."
Niko shares were down C$1.55 at C$46.88 at midday on Thursday on the Toronto Stock Exchange. ($1=$1.26 Canadian)
Subject: Canada probing Niko Bangladesh allegations................ 
Thu Jan 15, 2009 11:15 pm
