In August 2015, Ernst & Young published their 2015 report on Managing fraud, bribery and corruption risks in the mining and metals industry.
In the extractive industries, Ernst & Young see two leading developments – an increasing globalisation with multinationals operating across the globe with increasing risk profiles and second, global anti-corruption enforcement on the rise. These developments are not exclusive to extractive industries. Based on figures from TRACE International, extractive industries accounted for the highest number of fraud, bribery and corruption enforcement actions for any given industry.
Other important lessons from the report include the following:
- an increased cooperation between international regulators;
- fraud and corruption is seen by corporations as one of the top risks to manage;
- despite increased enforcement and regulation, corporations still take risks, paying cash to win or retain business or misstating financial records;
- facilitation payments remain the norm for many corporations in high risk countries and properly complying with strict recording obligations is patchy.
It is expected legislation will be introduced and supported by all sides of politics and in the words of the NSW Premier, “we want ICAC to get cracking…we want it to continue to hunt down serious and systemic corruption in this state.”