Breaching US Federal bribery laws in Africa can have long-term repurcussions.
In the not too distant African past, unscrupulous operators like Tiny Rowland – who the British Prime Minister Edward Heath called “the unacceptable face of capitalism” – once bought power, influence and the odd mineral concession through ties to corrupt leaders. Today’s Africa is changing, largely due to US and EU anti-bribery legislation.
From a legal perspective, individual executives working for multinational companies operating in America or Europe can be prosecuted for bribery committed elsewhere in the world.
The Guardian’s latest report that commodities trading company Trafigura is being investigated over its role in a $500m diesel and petrol supply deal in Zambia should serve as a warning to companies operating in Africa.
The country’s justice minister Wynter Kabimba was called before the Zambian Anti-Corruption Commission (ACC) on Monday to respond to allegations that Trafigura paid his company Midland Energy Zambia to secure the deal.
Kabimba, who is also Secretary-General of the ruling PF party says he will resign as minister if any allegations against him are proven. He has urged the ACC to pursue its investigations vigorously and tell Zambians the truth about “any wrongdoing”, the Guardian reports.
Trafigura responded with the following statement: “In August 2012 Trafigura was awarded a tender by the republic of Zambia’s ministry of mines, energy and water development for the supply and delivery of 216,920,000 litres of diesel and 21,230,000 litres of leaded petrol over a two year period.”
“The tender process was run on behalf of the ministry of energy by ZPPA, an independent regulatory body which follows World Bank procurement guidelines and procedures to evaluate bids on both a technical and a financial basis. Trafigura categorically refutes any allegation of corruption at any stage before, during or after the award of this tender and welcomes the investigation by the Zambian Anti-Corruption Commission.”
Trafigura was previously in trouble over toxic dumping in the Ivory Coast in 2009, which caused a public health crisis affecting 100,000 people.
But if your company is operating in the US, Federal law can sentence individuals for up to 15 years imprisonment, and impose substantial fines…Africa is changing.