Fairfax Media in Australia reported that the U.S. Department of Justice and the Australian Federal Police were investigating allegations that BHP Billiton had provided inducements, hospitality and gifts to officials from China and other countries.
The U.S. Justice Department told Fairfax, in response to a Freedom of Information Act request, that it was conducting “law enforcement proceedings” involving BHP Billiton, which supplied materials for the gold, silver and bronze medals used in Beijing. The Australian police confirmed that they had been working with their foreign counterparts and local regulators on Australian aspects of the U.S. investigation.
BHP Billiton said it had been cooperating with the “relevant authorities,” and in response to media queries it said it believed it had not broken any laws in its Olympics sponsorship.
“BHP Billiton is fully committed to operating with integrity and the Group’s policies specifically prohibit engaging in bribery in all its forms,” the company said in an e-mailed statement.
BHP Billiton has been under investigation in connection with the possibility of corrupt practices since at least 2009. It disclosed in 2010 that it had uncovered possible violations of some anti-corruption laws.
The company said Wednesday that it could not comment on whether that investigation had been expanded or whether the inquiry referred to Wednesday was separate.
Fairfax reported that between 2000 and 2008, the company spent millions of dollars on a major Olympics sponsorship deal and hospitality package that, according to a former China staff member who declined to be identified because of the sensitivity of the matter, involved more than 170 people, including government officials and chief executives from Chinese steel and mineral companies.
“Most sponsorships focus on media buys and advertising. We’ve done almost none,” Maria McCarthy, the head of BHP Billiton’s Olympic sponsorship team, said in March 2008. “Instead, we are focusing on community leveraging, stakeholder leveraging that involves governments and customers, and our staff.”
An employee of China’s flagship steel maker, Baosteel, said BHP Billiton had held a discussion for its iron ore clients during the Olympic Games at which they discussed the outlook for the steel industry. He said lower-ranking employees had attended.
“It was all part of their sponsorship — there was nothing out of the ordinary,” said the employee, who was not authorized to speak to the media. He said BHP Billiton had given attendees Olympics T-shirts and tickets.
Article source: http://www.nytimes.com/2013/03/14/business/global/us-inquiry-into-bhp-billiton-for-corruption.html?partner=rss&emc=rss