Report says Australia lets business bribery thrive
A recent report has accused Australian authorities of failing to stop bribery, financial lobbying and general deal-sweetening offers made to politicians, saying corrupt practice goes virtually unpunished.
Australia “has only one case that has led to foreign bribery prosecutions, out of 28 foreign bribery referrals received by the Australian Federal Police [AFP]... this is of serious concern,” according to the Organisation for Economic Cooperation and Development (OECD).
Australia is one of few developed nations to still allow 'facilitation payments', paid by companies to secure contracts overseas. This practice, among many others, has created a virtually expectation of extra funds and bribes in many business deals throughout Asia and Africa.
Australia is a signatory to the OECD's anti-bribery convention, making it a prime target for the body in its push to purge dirty money from massive deals.
Transparency International Australia spokesperson Michael Ahrens said the Australian government should shoulder some of the blame.
“The Australian Government can't avoid a large measure of responsibility for this in terms of the integrity framework of government,” he said.
In an interview on the subject with the ABC, a partner at law firm Baker and McKenzie said businesses have learned to side-step the minimal regulations.
“You've got ASIC [Australian Securities and Investments Commission] saying, 'Look, we can only do what we can do'... [then] you've got the AFP saying, 'We've limited resources',” she said.
“I'm not certain that that message is getting through. I think the message that seems to be getting through is; 'Don't get caught'.”
Among its condemnations of Australia's practices and lack of prosecution, the OECD highlighted the case of one Chinese official now serving nearly 300 years for accepting over $100 million in bribes. The official's businesses were linked to those of Australian magnate James Packer, and the OECD says it is strange that no joint investigation was launched into the possible involvement of Australian interests.
The OECD also says domestic investigations might be necessary for the operations of BHP, which is currently the subject of multiple international lawsuits including over accusations of bribery in China.
The Uniting Church is one of several groups hoping to change the way business is conducted inside and outside of the country, leading a charge to end the allowance of facilitation payments.
It has been suggested before, but when the Federal Government proposed signing-on to the same agreements that outlaw the practice in the US and UK, it was vehemently opposed by a group of 220 mid-sized mining companies. The group said that the wheels need to remain greased for business to operate in some remote and less-developed regions.
“An iron wall of secrecy exists around these payments," Dr Mark Zimsak, the church's research director said.
“We've written to governments in countries where Australian companies are operating, asking do any of these companies share information with them.”
“The lack of enforcement that is being conducted here in Australia, I think, is raising questions as to don't Australian companies care? Does the Australian Government not think this is important?” he said.
“We had no response from any of the governments.”