Government cracks down on Canadian companies bribing foreign officials
OTTAWA — The federal government is moving to crack down on Canadian companies involved in corruption abroad following reports in recent months of firms bribing foreign officials to secure lucrative deals in places such as Chad and Libya.
The proposed changes to Canada’s Corruption of Foreign Public Officials Act would make it easier for the RCMP to charge a Canadian individual or company involved in bribery, no matter where it took place.
It would also close a loophole that lets companies pay a foreign official to rush a file, or otherwise do their job, and another that ensures the law applies to all Canadian companies, not just those that are “for profit.”
The maximum penalty for bribing an official would be increased from five years in prison to 14 years.
Foreign Affairs Minister John Baird said the move is designed to help end corruption around the world and ensure Canada’s reputation as a fair and honest business partner doesn’t get sullied by the actions of a few miscreants.
“Canada is a trading nation,” Baird said Tuesday. “Our economy and future prosperity depend upon expanding our trade ties with the world. This, we hope, is a good faith sign that Canada’s good name retains its currency.
“Canadian companies can compete with the best and win fairly.”
The government introduced the amendments in the Senate on Tuesday.
Canada has been criticized for not doing enough to clamp down on Canadian companies and individuals involved in corruption and bribery, with the Organization for Economic Co-operation and Development (OECD) releasing a report in March 2011 citing a failure to prosecute offenders.
NDP foreign affairs critic Paul Dewar said other countries, such as the U.S., have stronger regulations than Canada, and it’s about time Canadian laws caught up.
“When we see Canadian companies or Canadian actors involving themselves in commerce abroad, the question is do the laws here apply abroad,” Dewar said. “And to date we haven’t seen that kind of oversight.”
Liberal MP John McKay, who has been working on a private member’s bill that would require more transparency for Canadian mining companies working abroad, questioned why the government is increasing penalties but not pushing companies to be more responsible from the start.
He said that is what the U.S., the U.K., Europe and others have been doing.
The government’s decision to tighten Canada’s anti-corruption law coincides with scrutiny of a number of Canadian companies for their activities abroad.
Calgary-based Griffiths Energy International was ordered to pay $10.35 million in fines two weeks ago after pleading guilty to bribing the wife of Chad’s ambassador to Canada for resource rights in the West African nation.
Officials at Montreal engineering firm SNC-Lavalin are under investigation. It is alleged payments of $160 million were made to Libyan dictator Moammar Gadhafi’s regime to secure contracts in the North African country.
As well, Calgary-based Niko Resources Ltd. was fined $9.5 million and after pleading guilty to bribing officials in Bangladesh, and Hydro-Kleen Group, based in Red Deer, Alta., was fined $25,000 after admitting it bribed a U.S. immigration official.
lberthiaume(at)postmedia.com
Twitter:/leeberthiaume
