Penalties levied against Niko Resources on Friday show that Canada's anti-corruption laws are gaining strength but are still weaker than similar laws in the United States, observers said.
The case, settled by a guilty plea negotiated by Niko and prosecutors following a six-year investigation by the RCMP, is only the second conviction under the Canadian Corruption of Foreign Public Officials Act, passed in 1998.
In the previous case, Red Deer-based Hydro Kleen Systems Inc. was fined $25,000 in 2005 for bribing an American customs official to expedite its work visas and flag rival firms in a database to make it difficult for them to enter the U.S.
The $9.5 million Niko has agreed to pay, plus three years of probation, settle charges that it bribed a Bangladesh official who was responsible for deciding compensation for villagers after a well blowout in 2005.
James Klotz, president of Transparency International Canada, said the fine isn't enough, but it's a start.
"It's a lot of money, but it pales in comparison to the $800 million in fines that has been levied in the U.S.," he said at court. "Other countries are starting to levy hundreds of millions of dollars. But it's a start.
"Even in the U.S., when they started prosecutions under the Foreign Corrupt Practices Act (of 1977), the fines started off small and ratcheted up. Hopefully, now corporate Canada is aware the fines are going to be significant before participating in corruption and that judges will continue to ratchet up the fines."
Dana Coffield, president and chief executive of Gran Tierra Energy Inc., agreed that the American law is more feared.
The Calgary-based company has operations in Brazil, Colombia, Peru and Argentina and is listed on exchanges in both Canada and the United States.
"In the U.S., there are $100-million penalties out there, regularly," said Coffield. "I noticed in some of the articles how unusual it is in Canada for prosecution to take place, while in the U.S. it's not only common, but the fines and penalties can be devastating, not only to the companies but to the individuals."
He said all staff have to take annual training to understand the U.S. act and Gran Tierra's ethical standards.
"We have zero tolerance for this."
Peter Bowal, a law professor in the Haskayne School of Business at the University of Calgary, said the lack of convictions under the Canadian act means there are few guidelines on sentencing.
He added the level of fine shows the court considers the offence to be serious, with the involvement of third parties affected by Niko's blowout likely an aggravating factor.
"Our act is a little bit different than the Foreign Corrupt Practices Act in the U.S.," he said. "They are a little more aggressive on it there."
He said the Canadian law is straightforward but isn't enforced very often because bribery is difficult to prove and the RCMP and federal government "aren't really equipped to be world cop."
Under the act, bribery is considered more serious than "facilitation payments," Bowal said, with the latter defined as payments made to get something done that would happen anyway, such as a fee to jump to the front of a line.
Both practices are forbidden at Calgary-based Talisman Energy Inc., said spokesman David Mann, adding that all employees must take ethics training at least once a year.
"Once a year, there's a half-hour to 40-minute online course we have to take, with videos and examples and questions, plus there's an affidavit you have to sign that says you haven't done anything to contravene the company policy," he said. "Plus there's a section on bribes and facilitation payments made to foreign officials."
Talisman has operations around the world, including in Southeast Asia and Latin America.
Haskayne associate dean Loren Falkenberg said the Niko fine is a "wake-up call" for Canadian businesses operating abroad.
"Resource companies are in a very difficult position because they have to go to where the resources are," she said. "That's not always where the most stable, efficient economies are. They have a huge impact on the community."
Falkenberg said that although some cultures encourage bribery, the practice leads to inefficiency and ultimately is bad for business.
With a file from Rebecca Renty, Calgary Herald
dhealing@calgaryherald.com
twitter.com/healingslowly
The case, settled by a guilty plea negotiated by Niko and prosecutors following a six-year investigation by the RCMP, is only the second conviction under the Canadian Corruption of Foreign Public Officials Act, passed in 1998.
In the previous case, Red Deer-based Hydro Kleen Systems Inc. was fined $25,000 in 2005 for bribing an American customs official to expedite its work visas and flag rival firms in a database to make it difficult for them to enter the U.S.
The $9.5 million Niko has agreed to pay, plus three years of probation, settle charges that it bribed a Bangladesh official who was responsible for deciding compensation for villagers after a well blowout in 2005.
James Klotz, president of Transparency International Canada, said the fine isn't enough, but it's a start.
"It's a lot of money, but it pales in comparison to the $800 million in fines that has been levied in the U.S.," he said at court. "Other countries are starting to levy hundreds of millions of dollars. But it's a start.
"Even in the U.S., when they started prosecutions under the Foreign Corrupt Practices Act (of 1977), the fines started off small and ratcheted up. Hopefully, now corporate Canada is aware the fines are going to be significant before participating in corruption and that judges will continue to ratchet up the fines."
Dana Coffield, president and chief executive of Gran Tierra Energy Inc., agreed that the American law is more feared.
The Calgary-based company has operations in Brazil, Colombia, Peru and Argentina and is listed on exchanges in both Canada and the United States.
"In the U.S., there are $100-million penalties out there, regularly," said Coffield. "I noticed in some of the articles how unusual it is in Canada for prosecution to take place, while in the U.S. it's not only common, but the fines and penalties can be devastating, not only to the companies but to the individuals."
He said all staff have to take annual training to understand the U.S. act and Gran Tierra's ethical standards.
"We have zero tolerance for this."
Peter Bowal, a law professor in the Haskayne School of Business at the University of Calgary, said the lack of convictions under the Canadian act means there are few guidelines on sentencing.
He added the level of fine shows the court considers the offence to be serious, with the involvement of third parties affected by Niko's blowout likely an aggravating factor.
"Our act is a little bit different than the Foreign Corrupt Practices Act in the U.S.," he said. "They are a little more aggressive on it there."
He said the Canadian law is straightforward but isn't enforced very often because bribery is difficult to prove and the RCMP and federal government "aren't really equipped to be world cop."
Under the act, bribery is considered more serious than "facilitation payments," Bowal said, with the latter defined as payments made to get something done that would happen anyway, such as a fee to jump to the front of a line.
Both practices are forbidden at Calgary-based Talisman Energy Inc., said spokesman David Mann, adding that all employees must take ethics training at least once a year.
"Once a year, there's a half-hour to 40-minute online course we have to take, with videos and examples and questions, plus there's an affidavit you have to sign that says you haven't done anything to contravene the company policy," he said. "Plus there's a section on bribes and facilitation payments made to foreign officials."
Talisman has operations around the world, including in Southeast Asia and Latin America.
Haskayne associate dean Loren Falkenberg said the Niko fine is a "wake-up call" for Canadian businesses operating abroad.
"Resource companies are in a very difficult position because they have to go to where the resources are," she said. "That's not always where the most stable, efficient economies are. They have a huge impact on the community."
Falkenberg said that although some cultures encourage bribery, the practice leads to inefficiency and ultimately is bad for business.
With a file from Rebecca Renty, Calgary Herald
dhealing@calgaryherald.com
twitter.com/healingslowly
© Copyright (c) The Calgary Herald
Tidak ada komentar:
Posting Komentar