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Mining giant BHP Billiton fined 25 mln USD over gift trips

Xinhua, May 21, 2015 Adjust font size:

Australian mining giant BHP Billiton has been found to have breached corruption legislation and fined 25 million U.S. dollars over hospitality packages for foreign government officials at the 2008 Beijing Olympics.

In a statement released on Thursday morning, BHP Billiton Chief Executive Andrew Mackenzie said the U.S. Securities and Exchange Commission (SEC) was enforcing an administrative order as the company had failed to meet internal record keeping standards about its Olympic hospitality program, required under the U.S. Foreign Corrupt Practices Act.

The investigation, which began in 2009, centered over BHP Billiton paying for 60 foreign government officials and some of their spouses to attend the Beijing Olympics, which the company sponsored.

The investigation found BHP Billiton splashed out on luxury hotels and event tickets with packages costing up to 12,800 U.S. dollars per person.

According the SEC's order instituting a settled administrative proceeding, some officials were connected to pending BHP negotiations for mining rights such as those in Congo, Guinea, Burundi, the Philippines and other countries with "well known histories of corruption."

The SEC said BHP Billiton's hospitality packages were not governed by an "independent compliance function."

Mackenzie said the company cooperated fully with the investigation and had since implemented suggested changes.

"We have fully cooperated with the SEC throughout this process, " he said. "We have taken the appropriate remedial actions and developed a world class compliance program that builds on the strong policies we have had in place," he said.

"Our company has learned from this experience and is better and stronger as a result," he added.

The Australian Federal Police's investigation into the same matter, which began in 2013, remains open. Endi