Tuesday, 16 November 2010

Transparency and Corruption in Oil Companies

In October, Transparency International released its annual list of the most corrupt countries, naming Somalia as the most corrupt, followed by Burma, Afghanistan and Iraq. At the top of the list for least corrupt countries are Denmark, New Zealand and Singapore. The United States fell from 19 to 22 on the least corrupt list. The United Kingdom's score dropped but it remains at 20 on the list.

In a case against the oil service industry companies and the freight forwarder, the SEC alleged that the companies bribed customs officials in more than 10 countries in exchange for such perks as avoiding applicable customs duties on imported goods, expediting the importation of goods and equipment, extending drilling contracts and lowering tax assessments. The companies also paid bribes to obtain false documentation related to temporary import permits for oil drilling rigs, and enable the release of drilling rigs and other equipment from customs officials.



Globally, one of the biggest changes on the horizon is the implementation of the UK Bribery Act, which will take effect in April 2011. It makes businesses with any UK interest criminally liable if staff, subsidiaries, intermediaries or associated persons offer bribes on their behalf across the world, according to Reuters news service. Unlike the FCPA, the UK act also prohibits facilitations payments, receiving or requesting bribes and commercial bribery. This includes recruitment companies, so consultants beware!


The link to the report is here at Transparency International and makes interesting reading.


My advice:


If you are in recruitment, you need to understand that bribes, in any form such as improper gifts, hospitality, business or employment opportunities, etc., either directly or indirectly are never acceptable.


If you are an engineer, you need to show you have done everything you can to prevent any bribery and coruption in any form.

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