(ATR)Rowland Jack, founder of the sports governance consultancy I Trust Sport, says sponsors of any major event should heed charges brought on by the U.S.Securities and Exchange Commission against BHP Billiton.
"This case is highly significant for sponsors of sport," Jack tellsAround the Rings.
The Australia-based mining company is paying a $25 million penalty to settle the SEC's charges over a global hospitality program connected to the BHP's sponsorship of the Beijing Olympics.
In a statement released on Thursday, the SEC saidBHP broke theForeign Corrupt Practices Act in 2008 when the company sponsored the attendance of foreign government officials at the Games.
BHP Billiton did not provide employees with training on how to complete forms for the company's hospitality program or evaluate bribery risks of the invitations, the SEC said.
As a result, a number of the hospitality applications were inaccurate or incomplete, and BHP invited government officials "connected to pending contract negotiations or regulatory dealings," the SEC added.
Jack says sponsors should pursue better practices in transparency.
"It's a serious warning for sponsors of any major event that they need to ensure they have adequate procedures in place to comply with anti-corruption legislation," Jack says.
"A company with its headquarters in Australia which put on hospitality for guests from various countries at the Beijing Games has been charged under a U.S. law.
"Both the Foreign Corrupt Practices Act in the U.S. and the UK Bribery Act are potentially international in scope."
Under the terms of the settlement, the Sydney Morning Herlad reports, BHP Billiton neither admits nor denies the SEC findings.BHP Billiton will report on the performance of a new compliance program within 12 months.
In addressing the charges in a statement, BHP Billiton chief executive Andrew Mackenzie said,"Our company has learnt from this experience and is better and stronger as a result."
The board of BHP Billiton will now oversee the company's hospitality and entertainment dealings involving government officials.
The Australian Federal Police are still looking into alleged bribery involving BHP Billiton.
Written byNicole Bennett
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