Ghana takes a bold move to wipe out bribery and corruption and establish FCPA best Practices
In June 2014, the government of Ghana sponsored a conference to discuss how to fight the abuses in the oil and gas industry. The result was rewriting some clauses of the agreements with oil and gas companies. In future they are required to certify compliance with the FCPA, the Bribery Act, and the OECD anti-bribery convention
Corporate corruption and bribery issues are bad for business. It is fundamentally destructive because it bypasses the central business principle that the sale of products should take place on the basis of price, quality and service.
The Politicians in Africa have started to legislate by thinking outside the traditional aid toolbox. Additionally many African countries are creating a platform to build local companies that can withstand the adverse short-term advantages caused by the continuous dependence on both East and West to provide qualified resources.
Earlier this year at Davos, the president of Guinea urged that the west must help Africa root out corruption, because institutionalized corruption is embedded in the western companies.
At the G8 meeting in London, the PM David Cameron said: Corruption must be tackled through transparency. He added: "We need to make sure that mineral wealth in developing countries becomes a blessing, not a curse".
Almost all African countries have experienced the corruption curse. Many grassroot organizations have claimed that for generations, internal corruption and lack of governance, transparency, accountability and democracy allowed a few eastern and western companies to raid and steal the African assets without providing the basis for sustainable business and GDP growth.
Therefore, it is encouraging that the revision of gas and petroleum agreements for the first time in Ghana's history contains provisions that shun corruption especially through bribery or any inducement of public officials, politicians and political parties
The new language used in the Ghana's petroleum agreements says:
Each contractor party warrants that neither it nor any of its Affiliates or any of their officers, directors or employers has made, offered or authorized and will not make, offer, or authorize with respect to the matters which are the subject of this Agreement, any payment, gift, promise or other advantage, whether directly or through any other person or entity, to or for the use or benefit of any public official (i.e. any person holding a legislative, administrative or judicial office, including any person employed by or acting on behalf of a public agency, a public enterprise or a public international organization) or any political party or political party official or candidate for office, where such payment, gift, promise or advantage would violate to the extent applicable to such Party,
- the applicable laws of Ghana;
- the laws of the country of incorporation of such Party or such Party's ultimate parent company;
- the principles described in the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed in Paris on December 17, 1977, which entered into force on February 15, 1999, and the Convention's Commentaries; the United States of America Foreign Corrupt Practices Act 1977; and the United Kingdom Bribery Act 2010.
Bribery, Fraud and Corruption is in actuality a western problem. This dilemma is documented by the top 10 FCPA fines for the last 8 years;
The top ten FCPA enforcement actions are global and not just related to Africa:
- Siemens (Germany): $800 million in 2008.
- KBR / Halliburton (USA): $579 million in 2009.
- BAE (UK): $400 million in 2010.
- Total S.A. (France) $398 million in 2013.
- Alcoa (U.S.) $384 million in 2014.
- Snamprogetti Netherlands B.V. / ENI S.p.A (Holland/Italy): $365 million in 2010.
- Technip S.A. (France): $338 million in 2010.
- JGC Corporation (Japan) $218.8 million in 2011.
- Daimler AG (Germany): $185 million in 2010.
- Weatherford International (Switzerland): $152.6 million in 2013.
The latest fine is just a few weeks old. It is a US$384 million enforcement action against Alcoa and one of its subsidiaries ranks. 5th on our list of the Top Ten FCPA cases of all time.
The Africa Center for Energy Policy (ACEP) has also praised Ghana for its rather "bold" initiatives in fine-tuning its petroleum agreements.
Copenhagen Compliance will speak at the 9th Annual Conference on Audit, Risk & Governance for inspiring leadership in Good Governance & Accountability in African Business & Government.
Our trustee Torben Nielsen, director & chairman of audit committees, will lead The African Roundtable on Board Audit & Governance Committees. Our chairman Lady Olga Maitland will speak on The Current Challenges and Landscape for Auditors. Our Secretary General Kersi Porbunderwalla will speak on 1. IT Governance & Risk Management as cornerstones of investment strategies, 2. Emerging cyber threat on the African landscape and 3. Lead a CSR workshop. Copenhagen Compliance is global in our GRC approach and dedicated to improving governance, risk management, compliance and IT security conditions wherever we can.
1 - 5 SEPTEMBER 2014 AT THE ZAMBEZI SUN HOTEL, VICTORIA FALLS, LIVINGSTONE - ZAMBIA.
Copenhagen Charter provides FCPA, BA, and OECD Bribery, fraud and Corruption certification.
At the 8th Annual European GRC Summit Mr. Claus K. Andersen of Royds will conduct a Bribery and Corruption Workshop that addresses a number of certification issues.
