BARRY FITZGERALD
The Sydney Morning Herald
BHP Billiton chief executive Marius Kloppers has effectively pre-empted the findings of two investigations into its Cambodian bribery scandal by saying he expects only modest fallout for the company.
Rather than wait for the findings of an investigation by the US Securities and Exchange Commission and an internal report being conducted with the help of a US law company, Mr Kloppers jumped the gun in an interview this week with the Financial Times, said by BHP to have been planned months ago.
"We think the potential issue we've got in the total scale of the company is very modest," Mr Kloppers is reported to have said.
The report quoted the chief executive as saying the potential wrongdoing needed to be put in context, which he said was why BHP limited its disclosure of the SEC probe and its own investigations to the bottom of its March-quarter exploration report, released on Wednesday.
"If there was any view that this was something that would have had a material impact on the company - and I'm not talking about financial-only terms, I am talking about overall reputational damage, all of the things that we weigh when we look at a disclosable event - you can clearly see we thought of this in one way," he said.
But Mr Kloppers also seemed to want an each-way bet.
"I don't want to detract from the seriousness of these issues at all because there is absolutely nothing more important in life than our reputation, as events at Toyota and Citibank show. So even if there was 50¢ that had changed hands to a government official, it would have been an unbelievably big deal."
BHP has so far refused to disclose where the bribery scandal took place, but nor has it bothered to deny widespread reports that it involved a $US1 million payment by the company to the Cambodian government in 2006 to secure bauxite leases.
There has also been speculation that there could be lingering issues for BHP from an aborted nickel project in the Philippines, with a Catholic Church aid agency saying in 2008 that the company needed to be more careful in picking its local joint-venture partners.
The Catholic Agency for Overseas Development alleged that BHP's Filipino partner in a nickel joint venture had offered bribes to community leaders to buy support for the project and silence opposition to the mining.
CAFOD said that while there was no evidence that BHP was involved, the company had a responsibility to ensure that partners and contractors it had chosen to work with did not partake in bribery or corruption.
Rather than wait for the findings of an investigation by the US Securities and Exchange Commission and an internal report being conducted with the help of a US law company, Mr Kloppers jumped the gun in an interview this week with the Financial Times, said by BHP to have been planned months ago.
"We think the potential issue we've got in the total scale of the company is very modest," Mr Kloppers is reported to have said.
The report quoted the chief executive as saying the potential wrongdoing needed to be put in context, which he said was why BHP limited its disclosure of the SEC probe and its own investigations to the bottom of its March-quarter exploration report, released on Wednesday.
"If there was any view that this was something that would have had a material impact on the company - and I'm not talking about financial-only terms, I am talking about overall reputational damage, all of the things that we weigh when we look at a disclosable event - you can clearly see we thought of this in one way," he said.
But Mr Kloppers also seemed to want an each-way bet.
"I don't want to detract from the seriousness of these issues at all because there is absolutely nothing more important in life than our reputation, as events at Toyota and Citibank show. So even if there was 50¢ that had changed hands to a government official, it would have been an unbelievably big deal."
BHP has so far refused to disclose where the bribery scandal took place, but nor has it bothered to deny widespread reports that it involved a $US1 million payment by the company to the Cambodian government in 2006 to secure bauxite leases.
There has also been speculation that there could be lingering issues for BHP from an aborted nickel project in the Philippines, with a Catholic Church aid agency saying in 2008 that the company needed to be more careful in picking its local joint-venture partners.
The Catholic Agency for Overseas Development alleged that BHP's Filipino partner in a nickel joint venture had offered bribes to community leaders to buy support for the project and silence opposition to the mining.
CAFOD said that while there was no evidence that BHP was involved, the company had a responsibility to ensure that partners and contractors it had chosen to work with did not partake in bribery or corruption.
1 comment:
LET FACE WITH THOSE CPP - COMMUNIST PEOPLE PARTY. I HOPE THEY WILL NOT HIDING THE TRUTH AND LIE TO THE CAMBODIAN PEOPLES. UNDER HUN SEN'S REGIME WE ALL KNOW AND THE WHOLE WORLD KNOW. WHAT ELSE THEY CAN SAY OR LIE. I HAVE ONLY A FEW QUESTION TO ASK CPP IF THEY CAN ANSWER ME. IMPUNITY, CORRUPTION AND HUMAN RIGHT.
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