Google – AFP, 3 October 2013
Australian
construction giant Leighton Holdings is at the centre of a
corruption scandal
with allegations of bribery among senior executives
(AFP/File, Greg Wood)
|
Sydney —
Australian construction giant Leighton Holdings, which operates in more than 20
countries, said Thursday it was "deeply concerned" by allegations of
bribery and widespread corruption within the company.
A six-month
investigation by Fairfax Media, which obtained hundreds of confidential company
documents, exposed what it said were "plans to pay alleged multi-million
dollar kickbacks in Iraq, Indonesia, Malaysia and elsewhere, along with other
serious corporate misconduct".
In one
case, it alleged, former chief executive Wal King approved a Aus$42 million
(US$39 million) bribe to a firm in Monaco nominated by Iraqi officials who gave
Leighton an Aus$750 million oil pipeline contract.
Fairfax
cited a memo written on November 23, 2010 by then-acting chief executive David
Stewart, in which Leighton International managing director David Savage had
revealed he and King knew of the massive kickback.
"I
asked did Wal K approve this? And he said 'yes'," the memo reportedly
said.
King, who
was the company's chief executive for 23 years before retiring in late 2010,
refuted the allegations.
"Well,
I deny the allegations that I had any prior knowledge of circumstances in Iraq.
I've never visited Iraq," he told ABC radio, adding that he could not
comment further because he was bound by confidentiality agreements with
Leighton.
Leighton is
a US$7 billion company active around the world in the telecommunications,
engineering and infrastructure, building and property, mining and resources and
environmental services industries.
The
revelations hit its share price hard, with the stock down more than 10 percent
in late afternoon trade at Aus$17.60.
In a
three-page statement to the Australian Stock Exchange, Leighton said it
"takes these accusations seriously and is deeply concerned about the
suggestions of impropriety", but added that the allegations were
"exceptional instances".
It said
that in 2011 Leighton voluntarily reported to Australian police a possible
breach of its code of ethics relating to accusations of bribery in Iraq, and
this was still under investigation.
"We
are not aware of any new allegations or instances of breach of our
ethics," it said.
The
statement added that a senior executive was dismissed in 2012 and "over
recent years, Leighton Holdings has continued to strengthen and improve its
corporate governance and risk management processes".
"The
directors of Leighton's subsidiary companies and of Leighton Holdings are aware
of their responsibilities and have at all times executed their duties with the
appropriate care and diligence, and in the best interests of each relevant
company," it added.
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