Newmont begins investigations into some foreign business operations
Apr 21, 2016 07:55 AM EDT
Newmont Mining, one of the biggest gold producers, has commenced its investigations into some external business operations. The investigation into activities of Newmont's foreign unit and servicers in nations outside the US comprises an evaluation of agreement that complies with the US Foreign Corrupt practices Act.
The miner is unable to estimate the result of the investigation approach and has not provided any information on it in its financial report. Omar Jabara, a spokesman for Newmont, said Reuters that it is the duty of the company to organize an investigation in the event of receiving trustworthy facts. However, Omar refused to provide additional information regarding the investigation.
The company's business operations outside the country include Ghana, New Zealand, Suriname, Peru, Australia and Indonesia. The miner has the largest share in the market value.
Newmont is working together with the Department of Justice and the US Securities and Exchange Commission in connection with the investigation process. Last month, the miner signed a one-year pact with the SEC ringing the decree of limitations in connection with the investigation. In addition, the company recently signed a similar deal with the Department of Justice (DOJ).
The form 10-K filed with the commission on February 17, 2016, showed that the company's business operations comply with the US Foreign Corrupt Practises Act (FCPA). The company had also noted that any violation with regard to this foreign policy would lead to fines, removal of permits or license and other related security penalties including a reputation damage.
"We occasionally identify or are apprised of information or allegations that certain employees, affiliates, agents or associated persons may have engaged in unlawful conduct for which we might be held responsible," the miner said in a filing with the Securities Exchange Commission. Newmont also stated that it is investigating foreign business issues with the help of external counsel.
Meanwhile, the DOJ said that it will add additional resources to the FCPA, with ten fresh prosecutors and detective agents. The increase will improve the justice department's harmonization with foreign law management colleagues. The pilot program that is created to boost self-reporting indicates how the justice department will trim penalties if firms reveal FCPA breach voluntarily. The program also requires the firms to cooperate completely with the investigation and personal prosecution of the DOJ, JD SUPRA BUSINESS ADVISOR reported.
For the eligible companies, the DOJ might cut penalty up to 50% below the bottom end of the fine range set by the US Sentencing Guidelines. Meanwhile, the reduction is 25% below the bottom end of the fine range for the companies that opt not to reveal FCPA breach, however, collaborates with an official investigation in the later stage.