The global oil corruption scandal and Australia’s role in it

UNAOIL Why we Must Act , The Age, Nick McKenzie, 2 Apr 16 Australia is leagues behind the US when it comes to investigating corrupt multinational companies who bribe their way to success in third world countries.

This fact is even more concerning given that US prosecutors acknowledge that even they aren’t getting it right, and need to do more to send US corporate crooks to jail. If the US regime needs a jolt, Australia’s system needs a triple bypass.

Recently, when the CEO of the Australian Securities Exchange, Elmer Funke Kupper, stood down to deal with a police investigation over an alleged international bribery case, we even had the corporate cop saying what a “sad loss” it was.

Not a single Australian executive has been jailed for paying a bribe overseas, despite the introduction in 1999 of specific laws banning this practice…….

Unaoil is a Robin Hood in reverse. On steroids. It robs the poor of oil-rich nations such as Iraq, Libya, Angola and Iran. The citizens own the resources beneath their feet, but the money from exploiting them ends up lining the pockets of executives and crooked officials.

Among the Australian firms exposed in the leaked trove of documents is Leighton Offshore, the overseas arm of construction giant Leighton Holdings (since renamed CIMIC).

The emails show that Leighton Offshore promised to pay tens of millions of dollars in bribes in 2010 and 2011. These kickbacks were allocated by Unaoil to high-ranking Iraqi officials and politicians. In return, Leighton Offshore wanted these corrupt officials to help them win pipeline construction projects worth more than $1 billion.

This Australian-funded bribery is precisely the sort of illegal conduct the FBI’s McEachern says fuels inequality, anger and extremism…….

Both the US and UK have comprehensive anti-foreign bribery frameworks. Companies and whistle blowers have strong incentives to self-report corruption and co-operate with authorities – in the US, volunteering information can mean payments of millions of dollars to individual informers. High-quality inside knowledge makes it easier for authorities to hold the corrupt to account.

None of this applies in Australia. ra rahttp://www.theage.com.au/interactive/2016/the-bribe-factory/day-3/why-we-must-act.html

LET’S NOT LEAVE THE OIL INDUSTRY OUT OF OUR SCRUTINY

UNAOIL – The Company That Bribed The World The Age, HuffPost http://www.theage.com.au/interactive/2016/the-bribe-factory/day-1/the-company-that-bribed-the-world.html 31 Mar 16

In the list of the world’s great companies, Unaoil is nowhere to be seen. But for the best part of the past two decades, the family business from Monaco has systematically corrupted the global oil industry, distributing many millions of dollars worth of bribes on behalf of corporate behemoths including Samsung, Rolls-Royce, Halliburton and Australia’s own Leighton Holdings.

Now a vast cache of leaked emails and documents has confirmed what many suspected about the oil industry, and has laid bare the activities of the world’s super-bagman as it has bought off officials and rigged contracts around the world.

A massive leak of confidential documents has for the first time exposed the true extent of corruption within the oil industry, implicating dozens of leading companies, bureaucrats and politicians in a sophisticated global web of bribery and graft.

After a six-month investigation across two continents, Fairfax Media andThe Huffington Post can reveal that billions of dollars of government contracts were awarded as the direct result of bribes paid on behalf of firms including British icon Rolls-Royce, US giant Halliburton, Australia’s Leighton Holdings and Korean heavyweights Samsung and Hyundai.

The investigation centres on a Monaco company called Unaoil, run by the jet-setting Ahsani clan. Following a coded ad in a French newspaper, a series of clandestine meetings and midnight phone calls led to our reporters obtaining hundreds of thousands of the Ahsanis’ leaked emails and documents.

The trove reveals how they rub shoulders with royalty, party in style, mock anti-corruption agencies and operate a secret network of fixers and middlemen throughout the world’s oil producing nations.

Corruption in oil production – one of the world’s richest industries and one that touches us all through our reliance on petrol – fuels inequality, robs people of their basic needs and causes social unrest in some of the world’s poorest countries. It was among the factors that prompted the Arab Spring.

Fairfax Media and The Huffington Post today reveal how Unaoil carved up portions of the Middle East oil industry for the benefit of Western companies between 2002 and 2012.

In part two we will turn to the impoverished former Russian states to reveal the extent of misbehaviour by multinational companiesincluding Halliburton. We will conclude the three-part investigation by showing how corrupt practices have extended deep into Asia and Africa……….

In continuing fallout from the joint Fairfax Media-Huffington Post investigation into corruption in the oil industry, the Monaco government revealed that it had raided the homes and offices of Unaoil’s principals, who ran the company exposed as the global bagman for the oil industry.
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Unaoil executives “were also interviewed… in the presence of British officers in connection with a case of vast corruption with international ramifications that involves many foreign companies active in the petroleum sector,” the Monaco government’s statement said.
Fairfax Media revealed on Thursday that the British police had teamed up with the Australian Federal Police, the US Department of Justice and the FBI to investigate the vast cache of leaked Unaoil emails on which our stories have been based.
Unaoil was hired over almost two decades by large multinational firms, including the offshore arm of Australia’s Leighton Holdings, to pay bribes to top overseas officials in return for winning government funded contracts in oil-rich nations.
Police raids and more revelations: the fallout of the Unaoil scandal The Age, April 1, 2016 Nick McKenzie, Richard Baker, Michael Bachelard, Daniel Quinlan “……. In continuing fallout from the joint Fairfax Media-Huffington Post investigation into corruption in the oil industry, the Monaco government revealed that it had raided the homes and offices of Unaoil’s principals, who ran the company exposed as the global bagman for the oil industry.
Unaoil executives “were also interviewed… in the presence of British officers in connection with a case of vast corruption with international ramifications that involves many foreign companies active in the petroleum sector,” the Monaco government’s statement said.
Fairfax Media revealed on Thursday that the British police had teamed up with the Australian Federal Police, the US Department of Justice and the FBI to investigate the vast cache of leaked Unaoil emails on which our stories have been based.
Unaoil was hired over almost two decades by large multinational firms, including the offshore arm of Australia’s Leighton Holdings, to pay bribes to top overseas officials in return for winning government funded contracts in oil-rich nations……… http://www.theage.com.au/business/police-raids-and-more-revelations-the-fallout-of-the-unaoil-scandal-20160401-gnw9mx.html#ixzz44ZNjGbWg
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We are becoming a dumping ground for dirty money

The Age, Nick McKenzie, 1 Apr 16

Anti-corruption experts in the US and Europe have urged Australia to properly resource and empower its anti-bribery regime as Australia emerges as the “dumping ground” for dirty money from Asia.

Officials believe that under-resourcing, ineffective laws and competing priorities between the federal police and corporate watchdog ASIC are a factor in the failure to resolve many cases.

The call comes after Fairfax Media revealed Australian involvement in one of the biggest bribery scandals to ever hit – a scandal that has implicated a number of Australian firms and executives including the offshore arm of Leighton Holdings and WorleyParsons…….

The Coalition government has focused on fighting union corruption, but has been all but silent on the major gaps in Australia’s anti-corporate corruption regime.

http://www.smh.com.au/national/the-world-thinks-australia-should-lift-its-anticorruption-game-20160331-gnv9pz.html#ixzz44ZLaqcKH