Oil and gas has highest bribery rate

Oil and gas has highest bribery rate by Guy Chazan, July 15, 2012, Financial Times (requires subscription)
The oil and gas industry was subject to the most prosecutions for bribery and graft in the UK of any sector over the past four years, according to a new survey. The study by Ernst & Young found that of 26 completed cases since 2008, oil and gas made up nearly one-fifth of prosecutions. … Many oil companies have instituted rigorous internal procedures to root out corruption. But Jonathan Middup, UK Head of Ernst & Young’s anti-bribery and corruption team, said they often got their priorities wrong. “Companies spend a disproportionate amount of time and effort on compliance around corporate hospitality and facilitation payments,” he said, “and not enough on the issue of third-party due diligence – what agents, intermediaries, introducers and joint-venture partners are doing in their name.” Third-party risk, he said, is “constant and ongoing”. “You can’t prevent other people breaking the law, but you are liable if they do,” he said. The issue is particularly acute for oil companies because of the importance of multimillion dollar procurement contracts in big oil developments.

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