Global Courant 2023-05-13 15:55:26
The Federal Government of Nigeria is reportedly seeking to award revenue collection to SICPA, a global security ink supplier and secure identification company, which has been convicted and fined CHF 81 million ($90 million) for organizational deficiencies by the Swiss Office of the Attorney General (OAG), when the OAG finally concluded its investigation and issued a criminal order for bribery.
The proceedings identified organizational deficiencies that enabled SICPA employees to bribe government officials when doing business in Brazil, Colombia and Venezuela.
SICPA had reportedly been awarded a revenue collection contract by the Federal Government of Nigeria amid the company’s reputation tarnished by allegations of systemic illegal practices and investigations in several countries.
According to media reports, this was based on recommendations made to the Bureau of Public Procurement (BPP) through a proposal from Kibo Laboratories LLC, based in Washington DC.
SICPA’s sanction was for the recognized “organizational deficiencies” between 2008 and 2015 relating to old actions taken without the company’s consent and against its best interests.
A statement from the Communications Department of the OAG read, among other things: “With the writ of execution imposed in accordance with art. 102 paragraph. 2 VCA in conjunction with art. 322septies SCC, SICPA SA (SICPA) has acknowledged that it has not taken all necessary and reasonable organizational precautions to prevent bribes to foreign government officials. The OAG therefore ordered the company to pay a fine of CHF 1 million ($1.1 million) and issued an equivalent claim for damages of CHF 80 million ($89 million) under art. 71 paragraph. 1 VCA.”
Other countries where SICPA is reportedly currently under investigation include Egypt, India, Kazakhstan, Pakistan, Senegal, Vietnam and Ukraine.
“In the penal order, the OAG finds the former sales manager of SICPA, who took advantage of the shortcomings, guilty of bribery of foreign officials under Art. 322 F SCC. He is sentenced to a suspended prison sentence of 170 days. The warrant says he paid bribes to senior officials in the Colombian and Venezuelan markets between 2009 and 2011.
SICPA takes the measure of this sanction, but disagrees with the grounds, due to the lack of criminal measures in the countries where the crimes were allegedly committed.
In an accompanying letter from the Federal Prosecutor’s Office BA, Urs Köhli, the OAG explains: “The responsibility of the company does not mean that SICPA SA itself committed these infringements committed by former employees or consultants, nor that it wanted or accepted them. Since then, SICPA SA has voluntarily and fully addressed this organizational shortcoming”.
SICPA maintained that it was not aware of such acts before they were reported and that once they were brought to its attention, SICPA imposed sanctions on those responsible. Also in Brazil, the individuals whose conviction required SICPA to execute a leniency agreement were acquitted on June 8, 2022. In the other two countries referred to in the OAG decision, SICPA was never prosecuted or even informed of any criminal offence.
It was also noted that SICPA and its former employee have stated that they will not appeal against the punishment orders, which will be legally binding. SICPA regretted that an internal lack of organization may have led to actions deemed unethical by the OAG.
Regarding the sensitivity of the issues surrounding revenue generation in Nigeria, the federal government is expected to take a cursory glance to reconsider and reject a collaboration with SICPA on revenue collection, to avoid becoming entangled in the web of corrupt practices that are already engulfing the brand.
Involving SICPA in a monetization contract can further fuel and substantiate the idea that corruption is entrenched and an ongoing phenomenon in Nigeria. A government that seeks to improve its credibility with its citizens, the international community and the Corruption Index cannot turn a blind eye to the undesirable conduct of companies and business partners in other jurisdictions. Partnering with and collaborating with a company like SICPA will only discredit the reputation of the new government, an image it cannot afford when it comes to power on December 29.e May 2023.
Written by Akinlabi Hassan.
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