20th May 2015 12:52
LONDON (Alliance News) - BHP Billiton agreed to pay a USD25 million fine to settle charges that it violated the US Foreign Corrupt Practices Act when it paid for foreign government officials to attend the 2008 Summer Olympic Games in Beijing, China, the US Securities and Exchange Commission said Wednesday.
In a statement, the SEC said the resources company invited 176 government officials and employees of state-owned enterprises to attend the 2008 Olympics.
According to the SEC, BHP ultimately paid for 60 guests and people who joined them to attend.
The guests, most of whom came from countries in Africa and Asia, enjoyed hospitality packages that took place over three or four days including event tickets, luxury hotel accommodations, and sightseeing excursions.
The packages were valued at between USD12,000 and USD16,000 each.
"BHP Billiton footed the bill for foreign government officials to attend the Olympics while they were in a position to help the company with its business or regulatory endeavors," said Andrew Ceresney, Director of the SEC's Division of Enforcement.
"BHP Billiton recognized that inviting government officials to the Olympics created a heightened risk of violating anti-corruption laws, yet the company failed to implement sufficient internal controls to address that heightened risk," Ceresney added,
The SEC said that BHP required business managers to fill in forms to apply for the hospitality packages for anyone they wanted to bring to the Olympics, including government officials, but "did not clearly communicate to employees that no one outside the business unit submitting the application would review and approve each invitation".
No specific training was given to employees on how to complete the forms or evaluate the risks of bribery relating to the invitations.
The failure to do so means that BHP "extended Olympic invitations to government officials connected to pending contract negotiations or regulatory dealings such as the company?s efforts to obtain access rights".
"A 'check the box' compliance approach of forms over substance is not enough to comply with the FCPA," said Antonia Chion, Associate Director of the SEC's Division of Enforcement.
"Although BHP Billiton put some internal controls in place around its Olympic hospitality program, the company failed to provide adequate training to its employees and did not implement procedures to ensure meaningful preparation, review, and approval of the invitations," Chion said.
BHP shares were up 0.3% at 1,409.00 pence on Wednesday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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