Bribery arrests bring corruption risks faced by mining firms into focus

Edward James of Pinsent Masons was commenting after the NCA announced that it has brought charges against Romy Andrianarisoa, chief of staff to the president of Madagascar, and her associate, Philippe Tabuteau. Andrianarisoa, 46, and Tabuteau, 54, are “suspected of seeking a bribe to secure licences to operate in Madagascar from Gemfields”, a UK mining company, the NCA said.

The NCA said it arrested Andrianarisoa and Tabuteau in London on Thursday last week “at a meeting where they are suspected of having attempted to solicit a bribe”. Gemfields had reported the matter to it. Andrianarisoa and Tabuteau are due to appear in Southwark Crown Court for a hearing on 8 September.

Andy Kelly, head of the International Corruption Unit (ICU) at the NCA, said: “This operation demonstrates the ability of the ICU to capitalise on cooperation from industry. I am grateful to Gemfields for bringing this matter to our attention and for their on-going cooperation with the investigation. Their quick reactions to engage the NCA have been critical to our ability to pursue this case.”

James, who has highlighted how the confluence of a number of factors can present corruption risk in major projects – including in the energy, mining and telecoms sectors – said businesses should carry out specific bribery and corruption risk assessments for their projects and have policies and procedures in place to ensure staff know what to do in the event corruption risk materialises.

James said: “It is easy to become complacent and lose sight of the high levels of corruption risk that mining companies face when they seek to obtain new prospecting rights, convert these rights into mining rights, or renew their mining rights in respect of existing mines. The risks are particularly acute in higher risk countries and regions, particularly when operating in Africa.”

“Mining companies should ensure that they remain vigilant in their assessment of corruption risk to identify their weak spots and ensure more is done in those areas. Engaging with government or public officials, or their agents, in respect of high-stakes rights and licences remains a key area of risk that should be dealt with carefully. People going into these engagements should be properly trained and equipped with a clear game plan on what to do if they are asked to bribe so that they don’t feel stranded to deal with a difficult situation themselves or tempted to make the wrong decision,” he said.   

James has previously advised multiple mining companies on managing corruption risks in Africa and how to deal with specific situations encountered. He has also investigated corruption cases and helped clients deal with the outcomes.