Bribery Prevention Network

Foreign Bribery News: McKinsey and Company Africa (Pty) Ltd (McKinsey Africa), which operates in South Africa, will pay over US$122 million as part of a deferred prosecution agreement to resolve an investigation into a bribery of government officials between 2012 and 2016. “According to court documents and admissions, McKinsey Africa, acting through a senior partner and for the benefit of McKinsey, agreed to pay bribes to then-officials at Transnet SOC Ltd. (Transnet), South Africa’s state-owned and state-controlled custodian of ports, rails, and pipelines, and at Eskom Holdings SOC Ltd. (Eskom), South Africa’s state-owned and state-controlled energy company. “ ““McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa and unlawfully obtained a series of highly lucrative consulting engagements that netted McKinsey Africa and its parent entity McKinsey & Company approximately $85 million in profits,” said U.S. Attorney Damian Williams for the Southern District of New York.” Read more: https://lnkd.in/epg5u4Gx Learn more about how to prevent, detect and address bribery and corruption on the BPN Hub, including deferred prosecution agreements: https://lnkd.in/gN5KrdUA #antibribery #anticorruption

🌍 International Anti-Corruption Day 2024 🌍 Today marks International Anti-Corruption Day. This year’s theme, “Uniting with Youth Against Corruption: Shaping Tomorrow’s Integrity,” highlights the critical role young people play in the fight against corruption. By equipping youth with tools, resources, and opportunities, we can empower them to promote transparency, accountability, and integrity in their communities and beyond. The focus on youth engagement recognises their potential to lead change and shape a future free from corruption. Some steps businesses can take in line with this year’s theme are: 🌍 Educate and Empower Young Employees: Offer training on anti-corruption policies, ethical decision-making, and corporate integrity to all employees, with a special focus on younger team members as our future leaders. 🌍 Strengthen Internal Anti-Corruption Measures: Ensure robust compliance programs are in place to prevent corruption and align with global forward-looking frameworks, like the UN Global Compact’s 10th Principle on anti-corruption. 🌍 Communicate Commitment: Publicly endorse this year’s theme by highlighting your anti-corruption efforts, empowering young people to speak up and inspiring action across your industry now, and into the future. Join the global movement this #AntiCorruptionDay to inspire and support youth in leading the charge for a fairer, more just tomorrow. #Integrity #AntiCorruption #YouthEmpowerment #antibribery #anticorruption

💡 Grooming of Public Officials: Provision of improper gifts and hospitality The National Anti-Corruption Commission (NACC) Integrity Outlook Report 2022/23 (https://lnkd.in/gye2RCGs) defines 'Grooming' (in the integrity context) as the deliberate targeting of public officials, either through the intentional building of trust or by deliberate coercion and threats, to gain access to confidential information, influencing government outcomes and processes, or gaining commercial advantages. Grooming is often the driver behind the provisioning of improper gifts and hospitality to public officials by corporations (and others). The purpose of grooming is to establish personal relationships with individuals, with a view to then exploiting them for influence, private gain or access to information. (See short video by Office of the NT Independent Commissioner Against Corruption (ICAC): https://lnkd.in/gGqHFZUf The detection of grooming can often be problematic, particularly in the absence of proper records, and effectively designed monitoring programs and systems. Effectively designed preventative measures can assist organisations in managing these risks. Establishing effectively designed G&H Policies and protocols, including training of employees and business partners, maintaining accurate books and records, with regular assurance to detect unusual spend activity can ensure that organisations remain on the front-foot when it comes to preventing bribery and exploitation of public officials, for private gain. The BPN can help - find resources on: Policies and Procedures: https://lnkd.in/g_Dqjf_H Training and Communications: https://lnkd.in/ggtUKHvp Audit: https://lnkd.in/g-zsKUhQ

💡 Who is a foreign public official? Does your company’s bribery risk assessment identify interactions with foreign public officials? Bribing an employee of a foreign public enterprise is explicitly addressed under foreign bribery laws. ‘Foreign public official’ is broadly defined and includes, for example, employees of foreign state-owned commercial enterprises. Employees of a foreign public enterprise (aka state owned entity), may be considered a foreign public official and require careful assessment. It is critically important that as part of risk assessment and due diligence, interactions with foreign public officials are identified and risk assessed. This includes, identifying interactions to assess the ABC risk exposures: 💡 by third parties who act on behalf of the organisation with foreign public officials (which includes employees of foreign state owned entities); 💡 with third parties controlled or owned by foreign state owned organisations; 💡 across Australian corporation’s foreign branches, with their local public officials and/local state owned entities, as these would be considered ‘foreign public official’ relative to the Australian corporation. The BPN can help: https://lnkd.in/geiH56f

Serious Fraud Office announces bribery investigation into defence firm The Serious Fraud Office (SFO) has launched an investigation into suspected bribery and corruption at multi-national aviation and defence electronics group Thales.  The Thales Group is headquartered in Paris and its subsidiary Thales UK employs over 7,000 staff in the UK across 16 sites.  Investigators from the SFO and French authority Parquet National Financier (PNF) have informed the company of the investigation.  The SFO and PNF are conducting a joint investigation in their respective jurisdictions. https://lnkd.in/gAGA_v5S

FOREIGN BRIBERY NEWS: Gautam Adani, Sagar Adani and other senior executives indicted in the US in connection with a bribery scheme. As alleged in the indictment, between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period. “As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” stated United States Attorney Peace. “My Office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.” “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” stated Deputy Assistant Attorney General Miller. “These offenses were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs.” 

It’s International Fraud Awareness Week and this year’s theme is: The face of fraud is changing - collaboration is more important than ever. This campaign encourages all Australian Government officials to work together to understand new and emerging threats to help safeguard their agencies from fraud. The Australian Government takes fraud and corruption seriously. Visit counterfraud.gov.au for best practice approaches to prevent, detect and respond to fraud and corruption.

Corruption weakens our response to climate change. Bribery and poor accountability lead to the mismanagement of climate funds, erode trust, and delay vital projects. Learn how to ensure integrity leads the way to a greener future: https://bit.ly/3KLZZwi #COP29 #UnitedAgainstCorruption

💡 New Foreign Bribery Laws Now in Effect – Is Your Business Prepared? On 8 September 2024, the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 came into force, introducing significant changes to Australia’s foreign bribery laws. One major reform is the new corporate offence of failing to prevent bribery of a foreign public official, and the introduction of an "adequate procedures" defence. The Attorney-General's Department has released an Adequate Procedure Guide, providing key principles to help organisations meet this defence. If your business hasn’t yet reviewed these changes or the guidance, now is the time. The Bribery Prevention Network have developed a companion guide, providing quick access to practical resources to support businesses applying the adequate procedure principles in practice. Read more https://lnkd.in/gb7YBuTd #antibribery #anticorruption #combattingforeignbribery

"The Inspector of the National Anti-Corruption Commission has concluded her investigation into agency maladministration or officer misconduct in relation to the decision of the National Anti-Corruption Commission not to investigate the referrals of six persons from the Royal Commission into the Robodebt Scheme. The main issue which emerged from the material gathered during the investigation, was the actions taken by the NACC Commissioner following his declaration of a conflict of interest in relation to one of the referred persons." https://lnkd.in/geqfnwdk