In 2011, Griffiths Energy International (GEI) agreed to pay $10.35 million in fines after it admitted to bribing a foreign official. While working to take the company public, managers for the company discovered evidence of wrongdoing and reported them to Alberta Justice and cooperated fully with law enforcement. In court the company admitted that while it was looking to drill for oil in Chad, GEI struck a deal to pay the Chad ambassador to Canada a 2 million dollar consultation fee. After being advised that GEI could not make this type of arrangement with the ambassador because he was a government official, the company negotiated a very similar agreement with a consulting firm owned entirely by the ambassador’s wife.
[1]This is the second company to be found guilty under the Corruption of Foreign Public Officials Act. The first company, Niko Resources, bribed a Bangladeshi official in 2005.[2]
Some argue that Canadian companies should not be prosecuted for the way they conduct business in foreign countries. Russia and China do not limit these activities and the extra restrictions impose an unfair disadvantage on Canadian companies. Some also argue that in cases where wrongdoing have been alleged the foreign countries involved are so corrupt that it is impossible to trust the evidence obtained sufficiently to convict in a Canadian court.
Despite these arguments, the current state of Canadian law currently makes it illegal to bribe a foreign official. By coming forward to disclose the wrongdoing, GEI has acted ethically.
References:
http://business.financialpost.com/2011/06/25/niko-resources-fined-9-5-million-for-bribery/
http://www.huffingtonpost.ca/2013/01/22/griffiths-energy-bribery-fine-10-million_n_2527517.html
http://www.cbc.ca/news/canada/calgary/story/2011/06/24/calgary-niko-bribe-guilty.html