BHP Billiton, the world's largest mining company, has banned the use of facilitation payments, the Australian Financial Review newspaper reported on 6th July.
The Melbourne-based company had previously discouraged such payments, but it has now banned them outright in an effort to bring the company's anti corruption compliance efforts in line with the newly introduced UK Bribery Act.
The UK Bribery Act expressly prohibits facilitation payments (small bribes paid to facilitate routine government action), whereas the US Foreign Corrupt Practices Act (FCPA) makes an exception for them.
BHP Billiton's "Corporate Social Responsibility Requirements" document states that it has a zero tolerance policy towards bribery and corruption.
“Under no circumstances are kick-backs, facilitation payments, secret commissions or similar payments permitted,” the document reads.
“Specifically, our policy prohibits the offer, promise, gift or authorisation of the giving of a payment or anything else of value, directly or through an intermediary.”
The Wall Street Journal quoted a BHP US spokesperson, Ruban Yogarajah, as saying “We have conducted a review in line with the implementation of the UK Bribery Act (2010) and out policy now prohibits all employees offering or giving facilitation payments, even if it is customary to make such payments.”
The company has been investigated on suspicion on corruption in recent years. It is being investigated by the US Securities and Exchange Commission for possibly making illegal payments to the Cambodian government to secure a bauxite project.
Sources: BHP Billiton, Dow Jones, Wall Street Journal
For more information, please see the Menas ACCS website, here.
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