since 2011, would acquire a 25 per cent stake in the Mangara and Badila oilfields in Chad (that is, oilfields not implicated by the foreign bribery settlement) in exchange for C$300 million (US$290 million) of funding. In addition, Glencore would acquire a 33.3 per cent interest in three production sharing contracts GEI holds in Chad for C$31 million (US$30 million) – this would include the Borogop and Doseo blocks implicated by the foreign bribery settlement. GEI is currently getting reading for another IPO in London, hoping that shares might be valued at C$10 (US$9.70) per share,483 so that the C$1.6 million (US$1.5 million) founders’ shares, for which Ms. Niam paid C$1,600 (US$1,550), would be worth C$16 million (US$15.5 million). Interestingly, after the court had approved the plea agreement, the Republic of Chad dismissed the ambassador, who had since transferred to South Africa.484 What has not been discussed in the two Canadian foreign bribery cases is the use of the victim surcharge. Apparently, the surcharge is not a form of restitution to the victim but a general charge levied for the use of the respective Canadian province for victim services.485 In the GEI case, the statement of fact clarifies that the Canadian authorities are not alleging, and GEI is not admitting, that any influence was actually realized.486 But, in cases where the bribe affected an agreement entered into by a developing country, would the Canadian government consider changing the use of the surcharge to benefit the victims of the bribes, in particular in developing countries,487 or for funding the activities of the Royal Canadian Mounted Police International Anti-Corruption teams, bearing in mind that financial resources for funding their activities are limited?488
US HEALTH SECTOR CASES: SMITH & NEPHEW PLC, BIOMET INC., ORTHOFIX INTERNATIONAL N.V., PFIZER, ELI LILLY AND COMPANY Countries Involved Argentina, Brazil, Bulgaria, China, Croatia, Czech Republic, Greece, Indonesia, Italy, Kazakhstan, Mexico, Pakistan, Poland, Russia, Saudi Arabia and Serbia.
Case Details Two sets of investigations that began before 2012resulted in five Securities and Exchange Commission (SEC) and four Department of Justice (DOJ) enforcement actions under the Foreign Corrupt Practices Act (FCPA) in 2012. In the pharmaceutical sector, the enforcement actions were against Pfizer Inc. and certain of its subsidiaries, and against Eli Lilly and Company. In the medical device sector, parallel SEC and DOJ enforcement actions were brought against Smith & Nephew plc, Biomet Inc. and Orthofix International N.V. The US government’s investigation of 483
The Globe and Mail, 4 February 2013, “In wake of scandal, Griffiths Energy plans IPO in London”, www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/in-wake-of-scandal-griffithsenergy-plans-ipo-in-london/article8155299/. 484 The Globe and Mail, 30 January 2013, “Fired Chadian ambassador defends ‘done in the daylight’ Griffiths deal”, www.theglobeandmail.com/report-on-business/industry-news/the-law-page/fired-chadian-ambassador-defends-griffithsdeal/article8025380/?cmpid=rss1. 485 Worthwhile Canadian Initiative, A mainly Canadian economics blog, 17 April 2011, Frances Woolley, “Understanding Victim Fine Surcharges”, http://worthwhile.typepad.com/worthwhile_canadian_initi/2011/04/understanding-victim-fine-surcharges.html. 486 Her Majesty the Queen and Griffith Energy International Inc., Agreed Statement of Facts, op. cit.,para. 50 487 Under the BAE settlement with the UK Serious Fraud Office, BAE would make payments to Tanzania for text books and other school materials, The Guardian, 15 March 2012, “BAE finally pays out £29.5m for educational projects in Tanzania”, www.guardian.co.uk/global-development/2012/mar/15/bae-pays-for-tanzania-education-projects. 488 The OECD Working Group on Bribery, Phase 3 Report on Implementing the OECD Anti-Bribery Convention in Canada, March 2011, recommendation 4. b), www.oecd.org/daf/anti-bribery/antibriberyconvention/Canadaphase3reportEN.pdf.
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