Rachel Hewitt, with AAP
Herald Sun (Australia)
AUSTRALIAN regulators are likely to do their own investigations into corruption claims involving mining giant BHP Billiton, according to a leading corporate law expert.
The Australian Securities and Investments Commission yesterday would not confirm whether it was investigating already, but Melbourne University's Professor Ian Ramsay said local regulators would be "almost forced" to make inquiries.
Prof Ramsay noted that ASIC chief Tony D'Aloisio had confirmed the regulator was making routine inquiries into Rio Tinto in the wash-up of the Stern Hu affair, and expected it would have to respond the same way to the BHP situation.
US regulator, the Securities and Exchange Commission, and Britain's Serious Fraud Office are probing the claims, apparently related to a bauxite exploration project in Cambodia.
BHP revealed on Wednesday it had uncovered evidence of possible violations of anti-corruption laws involving dealings with government officials, but it has refused to say whether it is connected to allegations of an unofficial $US2.5 million payment to secure exploration rights in the Mondulkiri province.
Foreign Minister Stephen Smith said yesterday he could not see grounds for an inquiry into the conduct of Australian mining executives overseas.
"I don't think that is a sensible or appropriate response for the Government to take," Mr Smith told Sky News.
In a message to BHP staff yesterday, company chief executive Marius Kloppers said: "While matters of this kind are of great concern, they remind us that we must work in a way that is consistent with our code of business conduct and our charter values. Along with safety, nothing is more critical to our success than working with integrity.
"That means working in a way that upholds our values, which underpins everything we do."
Prof Ramsay said the type of wrongdoing alleged was more common than the conduct in Rio Tinto's bribery scandal. "So that's why I would have thought that regulators in Australia would be making inquiries. In fact, they're almost forced to make inquiries now," he said.
Prof Ramsay noted the increased focus of governments and regulators on bribery matters in recent years, including the much higher penalties for bribery under Australian law which came into effect this year.
He said it was inevitable BHP would be pressured to disclose more.
"It's just better to put it all out there initially -- and that assists in terms of preventing speculation," he said.
The Australian Securities and Investments Commission yesterday would not confirm whether it was investigating already, but Melbourne University's Professor Ian Ramsay said local regulators would be "almost forced" to make inquiries.
Prof Ramsay noted that ASIC chief Tony D'Aloisio had confirmed the regulator was making routine inquiries into Rio Tinto in the wash-up of the Stern Hu affair, and expected it would have to respond the same way to the BHP situation.
US regulator, the Securities and Exchange Commission, and Britain's Serious Fraud Office are probing the claims, apparently related to a bauxite exploration project in Cambodia.
BHP revealed on Wednesday it had uncovered evidence of possible violations of anti-corruption laws involving dealings with government officials, but it has refused to say whether it is connected to allegations of an unofficial $US2.5 million payment to secure exploration rights in the Mondulkiri province.
Foreign Minister Stephen Smith said yesterday he could not see grounds for an inquiry into the conduct of Australian mining executives overseas.
"I don't think that is a sensible or appropriate response for the Government to take," Mr Smith told Sky News.
In a message to BHP staff yesterday, company chief executive Marius Kloppers said: "While matters of this kind are of great concern, they remind us that we must work in a way that is consistent with our code of business conduct and our charter values. Along with safety, nothing is more critical to our success than working with integrity.
"That means working in a way that upholds our values, which underpins everything we do."
Prof Ramsay said the type of wrongdoing alleged was more common than the conduct in Rio Tinto's bribery scandal. "So that's why I would have thought that regulators in Australia would be making inquiries. In fact, they're almost forced to make inquiries now," he said.
Prof Ramsay noted the increased focus of governments and regulators on bribery matters in recent years, including the much higher penalties for bribery under Australian law which came into effect this year.
He said it was inevitable BHP would be pressured to disclose more.
"It's just better to put it all out there initially -- and that assists in terms of preventing speculation," he said.
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