Wartsilla on the Forefront of Scandalous Practices

Wartsila maybe the giant of the industrial world today when it comes to its net sales figures it managed to achieve last year, it still simply does not grant the organization to go around creating menace for others. High time Wartsila disengages from taking undue liberties of others and for a change tends to act as a responsible organization.

The organization was lately held up in Sweden’s most scandalous bribery case. The public prosecutor has declared that “it is clear that Wartsila offered bribes to secure orders”. According to Wartsila the payments were surely made, however not with the intention of bribery but some consultancy services it has availed. Rederi AB Gotland a Swedish shipping line runs ferries from Gotland Island to mainland Sweden and vice versa.

Of late Rederi AB Gotland custom-built two super fast ferries from a Chinese shipyard. A total of eight main engines were supplied by Wartsila to the shipping line and six auxiliary engines for the vessels, along with propellers for one of them. The orders equaled to EUR 25-30 million.

The M/S Visby commenced this year round. Wartsila had two brokerage agreements with Euro Marine Ltd. This organization was partially owned by the key suspect of this bribery case – the technical Director at the shipping organization Bo Pettersson. Wartsila paid about EUR 1.1 million in two installments, one in year 2000 and the other in 2001 to the private Swiss bank account of Pettersson.

Finnish public prosecutor is contemplating the case as a grave matter under Swedish regulation. Wartsila has even managed to lobby successfully in this regard simply by bribing the concerned legislatures (clearly those who were in the positions of changing the accord of the set rules and regulations to be met compulsorily) as well! Wartsila is not new to the notorious and worldwide despised act of bribery as indeed it is one such organization that has made history in the recent times by being caught up in Sweden's most scandalous bribery trial.

The there is this other story that shows, yet again, not very positive things about Wartsilla. Wartsila Ltd has been condemned for having violated an agreement. Inquiries were lifted on its ability to meet contractual obligations. Apparently, Wartsila has built its agency premises in Karachi - Pakistan in accordance to its unique requirements on a 5 year lease contract from the construction company. Since it was a personalized infrastructure built specifically for Wartsila, for which Wartsila paid absolutely nil upfront fee.

Hence it was agreed in writing that Wartsila will extend its payment of the lease allowance for 5 yrs even in case where it may leave the premises much earlier. As luck would have it, Wartsila departed the facility in the 4th year due to its pre-planned closure in Karachi. Even though the builder promptly provided all the pre-decided facilities like provision of water supply and electricity power, Wartsila falsely claimed that it was not provided so and therefore terminated the contract with the builder.

By the end of four years, having conveniently used the facility, this vague reason given by Wartsila to be leaving premises has increased severe inquiries worldwide customers considering Wartsila`s credibility, predominantly when customers are buying into large allowances and trusting on the company’s brand name, buying large generators.

Straighten up Wartsila before you find yourself stuck in some major crisis and at no point of return.