BHP Billiton (BHP), which is fighting ferociously against the push for an inquiry into the iron ore industry, has been fined US$25 million by the US corporate regulator following a long-running bribery investigation.
The penalty relates to expensive entertainment, which reportedly included luxury hotels and event tickets, for Asian and African government officials at the 2008 Beijing Olympics.
The matter remains the subject of an investigation by the Australian Federal Police.
BHP - which made no mention of the size of the penalty in the key summary points of its ASX release today - admitted that it had no independent compliance function at the time. It said it had since created one.
"Today this function would be required to approve any offer of hospitality of this kind to a government official," BHP said.
BHP chief executive Andrew Mackenzie has been campaigning furiously against calls for a parliamentary inquiry into Australia's iron ore industry.
Mackenzie has claimed the inquiry is not needed, would be a waste of taxpayers' money and would damage Australia's reputation among its trading partners.
The question in light of today's bribery issue is whether MPs and taxpayers will view it as unnecessary and a waste of money.
"Our company has learned from this experience," Mackenzie said in response to the fine.
No doubt he is worried about who in Canberra will learn from it too.
The penalty relates to expensive entertainment, which reportedly included luxury hotels and event tickets, for Asian and African government officials at the 2008 Beijing Olympics.
The matter remains the subject of an investigation by the Australian Federal Police.
BHP - which made no mention of the size of the penalty in the key summary points of its ASX release today - admitted that it had no independent compliance function at the time. It said it had since created one.
"Today this function would be required to approve any offer of hospitality of this kind to a government official," BHP said.
BHP chief executive Andrew Mackenzie has been campaigning furiously against calls for a parliamentary inquiry into Australia's iron ore industry.
Mackenzie has claimed the inquiry is not needed, would be a waste of taxpayers' money and would damage Australia's reputation among its trading partners.
The question in light of today's bribery issue is whether MPs and taxpayers will view it as unnecessary and a waste of money.
"Our company has learned from this experience," Mackenzie said in response to the fine.
No doubt he is worried about who in Canberra will learn from it too.