OZ Min, Cochlear in [Cambodian] bribe probe

January 14, 2013
By Katherine Jimenez
The Australian

TWO high-profile Australian companies, believed to be mining company OZ Minerals and hearing device maker Cochlear, are believed to be at the centre of federal police investigations into alleged foreign bribes.

A spokesman for the Australian Federal Police yesterday confirmed to The Australian that "two cases highlighted by the (Organisation for Economic Co-operation and Development) are being reviewed".

Last October, the OECD published a scathing report of the AFP in its review of Australia's implementation of the organisation's anti-bribery convention, describing the country's overall enforcement of the foreign bribery offence as "extremely low". It also suggested the AFP may have closed foreign bribery cases before thoroughly investigating the allegations.

Among the cases the OECD identified as a concern, it is claimed, was the "joint-venture buyout case", which relates to OZ Minerals and its goldmining operations in Cambodia.

According to Fairfax Media, The Cambodia Daily newspaper last year alleged that OZ Minerals paid more than $US1 million to three women on the board of its joint-venture partner Shin Ha when it bought the company in 2009.

The women were closely related to Cambodian public officials, it alleged.

In its report, the OECD said: "The AFP declined to open an investigation because it received information from the AFP's overseas network that the transaction had been undertaken with due diligence and that all payments were made at the joint venture partner's request.

"The AFP did not inquire into key matters that could have corroborated the allegations, such as whether the board members were indeed related to foreign public officials."

An Oz Minerals spokeswoman said the AFP had not been in contact with the company and she declined further comment.

The allegations against Cochlear related to alleged bribes, including holiday trips to Disneyland and Italy, aimed at influencing a Portuguese medical supplies tender in 2004.

Cochlear could not be reached for comment.