This document discusses managing bribery and corruption risks in the construction and infrastructure industry globally. It provides an overview of risks and challenges by region, including Europe, the Middle East, India, and Africa. It also outlines eight steps companies should take to establish an effective anti-bribery and corruption compliance program, and how Ernst & Young can assist with these efforts.
Exit Strategy Planning For Investors PowerPoint Presentation SlidesSlideTeam
The firm has no exit strategy at present. This product outlines the exit strategy for the startup firm to help its owners founders liquidate their stake in the business by stop investing more funds in it and start earning substantial profits if business is successful and limit losses, if business is unsuccessful. The Chief Strategy Officer will present it to top level management in an internal meeting. The current scenario of the firm is depicted through its overview, brief description about key people, milestones achieved, shareholding pattern, and firm financial performance is determined by revenues earned, profit generated, and earnings per share, etc. The firm has been through various stages to raise funds and is moving ahead towards its exit stage. It will assess the current funding pattern to raise capital over years, assessing optimal time for preferring suitable exit option, etc. Investors are searching for various exit options. They can choose from several exit strategies such as Initial public offerings, management buyout and strategic acquisition by third party, etc. This template will help firm to decide which exit option is suitable for it with their process, process timeline and their respective market insights with their success rate. It will also provide comparative analysis for various exit options with average time to exit, etc. The firm valuation is assessed through discounted cash flow model which will determine the present value of the firm depending upon the estimation of how much money it will generate in future. The future financial performance will be determined by the projected balance sheet, income statement, cashflow statement, sales projections, etc. https://bit.ly/2AJHAj1
A joint report between EY and LSE with contribution from Seldon. This report describes research undertaken by The London School of Economics and Political Science on behalf of EY Financial Services to investigate the use of Artificial Intelligence and Machine Learning and to provide one use case for each of the following sectors; Insurance, Banking & Capital Markets, and Wealth & Asset Management.
Bovill - the UK financial services regulatory consultancy - runs regular briefings. These are the slides from the February briefing on anti-money laundering. For more information visit http://www.bovill.com/FinancialCrime.aspx.
Information on the event is below:
Taking a company-wide approach to money laundering
“The FCA has made it very clear that responsibility for the overall culture of firms sits at the top. We need leaders and senior managers within the industry to set the tone for how their staff behave.”
Tracey McDermott, Director of Enforcement and Financial Crime, FCA
The regulator has recently reiterated their intention to carry out further thematic and enforcement work in financial crime. However, many firms still have a fragmented approach to managing the risks of money laundering.
The responsibility for preventing financial crime is shared across the firm from the back office to the boardroom. Firms need to take a company-wide approach to tackling money laundering to ensure they are complying with regulation and managing risks effectively.
Bovill’s briefing looked at Anti-Money Laundering (AML), covering:
• Governance arrangements: as the foundation for effective communication and issue resolution
• Risk management: the difficulties of negotiating the right level of due diligence for higher risk customers and what tools can be used to help with this process
• Systems and controls: ensuring that these are fit for regulatory purpose and are appropriately maintained within your firm.
Exit Strategy Planning For Investors PowerPoint Presentation SlidesSlideTeam
The firm has no exit strategy at present. This product outlines the exit strategy for the startup firm to help its owners founders liquidate their stake in the business by stop investing more funds in it and start earning substantial profits if business is successful and limit losses, if business is unsuccessful. The Chief Strategy Officer will present it to top level management in an internal meeting. The current scenario of the firm is depicted through its overview, brief description about key people, milestones achieved, shareholding pattern, and firm financial performance is determined by revenues earned, profit generated, and earnings per share, etc. The firm has been through various stages to raise funds and is moving ahead towards its exit stage. It will assess the current funding pattern to raise capital over years, assessing optimal time for preferring suitable exit option, etc. Investors are searching for various exit options. They can choose from several exit strategies such as Initial public offerings, management buyout and strategic acquisition by third party, etc. This template will help firm to decide which exit option is suitable for it with their process, process timeline and their respective market insights with their success rate. It will also provide comparative analysis for various exit options with average time to exit, etc. The firm valuation is assessed through discounted cash flow model which will determine the present value of the firm depending upon the estimation of how much money it will generate in future. The future financial performance will be determined by the projected balance sheet, income statement, cashflow statement, sales projections, etc. https://bit.ly/2AJHAj1
A joint report between EY and LSE with contribution from Seldon. This report describes research undertaken by The London School of Economics and Political Science on behalf of EY Financial Services to investigate the use of Artificial Intelligence and Machine Learning and to provide one use case for each of the following sectors; Insurance, Banking & Capital Markets, and Wealth & Asset Management.
Bovill - the UK financial services regulatory consultancy - runs regular briefings. These are the slides from the February briefing on anti-money laundering. For more information visit http://www.bovill.com/FinancialCrime.aspx.
Information on the event is below:
Taking a company-wide approach to money laundering
“The FCA has made it very clear that responsibility for the overall culture of firms sits at the top. We need leaders and senior managers within the industry to set the tone for how their staff behave.”
Tracey McDermott, Director of Enforcement and Financial Crime, FCA
The regulator has recently reiterated their intention to carry out further thematic and enforcement work in financial crime. However, many firms still have a fragmented approach to managing the risks of money laundering.
The responsibility for preventing financial crime is shared across the firm from the back office to the boardroom. Firms need to take a company-wide approach to tackling money laundering to ensure they are complying with regulation and managing risks effectively.
Bovill’s briefing looked at Anti-Money Laundering (AML), covering:
• Governance arrangements: as the foundation for effective communication and issue resolution
• Risk management: the difficulties of negotiating the right level of due diligence for higher risk customers and what tools can be used to help with this process
• Systems and controls: ensuring that these are fit for regulatory purpose and are appropriately maintained within your firm.
Presentation: Compliance & Third Party Due DiligenceethiXbase
Presentation: Compliance & Third Party Due Diligence
By Leas Bachatene, Chief Executive Officer, ethiXbase
Kicking off 2017 which calls for a renewed and intensified focus on compliance, ethiXbase participated in discussions at the Asian Compliance and Anti-Corruption Summit hosted by the European University Viadrina Frankfurt (Oder) and German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) in Bangkok on January 11th and 12th. Devoted to the theme of “Compliance Across Asia”, the summit featured experts who discussed anti-corruption and compliance in Asia.
Speaking on third party due diligence, Leas Bachatene, Chief Executive Officer of ethiXbase, was joined by other experts from organisations including Johnson & Johnson Pharmaceuticals, Allianz Indonesia and distinguished academia.
View slides from Leas Bachatene’s presentation on compliance and third party due diligence here, which outlines best practice steps towards achieving due diligence on 100% of third party relationships in a cost-effective manner with ethiXbase 2.0. Enjoy!
BCG’s 2018 global challengers—100 rapidly globalizing companies from emerging markets—are getting ahead of the competition by using digital technologies.
The Key to Fixing the Problems with Strategy | A.T. KearneyKearney
For too many years, companies have been hobbled by the vicious cycle of busy thinking, frenetic activity, bureaucratic planning, and other hallmarks of today's corporate strategies. Research confirms the negative effects these conditions have on strategic output. Recognizing that new thinking was needed to reclaim strategy, A.T. Kearney set out to write the next chapter and set a new course for the future of strategy.
The FutureProof approach to strategy was developed by A.T. Kearney in response to the deteriorating state of strategic output among today’s organizations. Motivated by research, inspired by some of the most visionary strategic thinkers, and tested in client engagements, FutureProof Strategy promises to turn the tide of futile strategic exercises by bringing together three powerful principles: future inspiration, organizational inclusion, and a portfolio approach to capturing competitive opportunities. Used in combination, these principles transform strategy from ineffective, sequential, top-down instruction to purposeful and ongoing strategic competitive domination.
FUTURE PROOF® is a registered trademark of Toffler Associates, Inc.
The best digital transformation frameworks in 2020run_frictionless
We review digital transformation frameworks from the world’s top digital transformation consulting companies. PwC, McKinsey, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology.
> Read the full review here: http://bit.ly/31e9dtP
In this talk, I have discussed the issues around the need to recognize the business problem being solved, how to identify that, etc. rather than only focusing on the tech.
Apache Hadoop Summit 2016: The Future of Apache Hadoop an Enterprise Architec...PwC
Hadoop Summit is an industry-leading Hadoop community event for business leaders and technology experts (such as architects, data scientists and Hadoop developers) to learn about the technologies and business drivers transforming data. PwC is helping organizations unlock their data possibilities to make data-driven decisions.
AI and the Future of Work [TUG-CO, 11/15/23]Matt Small
This talk was given to the Tech User Group, Central Oregon on November 15th, 2023.
~~
AI revolutionizes the way we interact with information. It will change the way we work. In this talk, we will introduce the fundamental concepts and the latest research and policies in the field. We will then explore numerous opportunities and societal challenges related to technology adoption, work augmentation and identity. Finally, we will introduce Personal AI and the mission of Kwaai Lab.
Kwaai Lab, a non-profit, volunteer-based open-source AI lab, is composed of researchers, architects, developers, and philosophers. Our goal is to design and implement the tools, fundamentals, and policies that empower us all to own our own Personal AI assistants.
Government as a platform: 2018 GaaP Readiness Indexaccenture
Accenture research identified which factors play a crucial and mutually enforcing role for implementing GaaP in depth and at scale. Learn about the four pillars of GaaP readiness.
Presentation: Compliance & Third Party Due DiligenceethiXbase
Presentation: Compliance & Third Party Due Diligence
By Leas Bachatene, Chief Executive Officer, ethiXbase
Kicking off 2017 which calls for a renewed and intensified focus on compliance, ethiXbase participated in discussions at the Asian Compliance and Anti-Corruption Summit hosted by the European University Viadrina Frankfurt (Oder) and German-Southeast Asian Center of Excellence for Public Policy and Good Governance (CPG) in Bangkok on January 11th and 12th. Devoted to the theme of “Compliance Across Asia”, the summit featured experts who discussed anti-corruption and compliance in Asia.
Speaking on third party due diligence, Leas Bachatene, Chief Executive Officer of ethiXbase, was joined by other experts from organisations including Johnson & Johnson Pharmaceuticals, Allianz Indonesia and distinguished academia.
View slides from Leas Bachatene’s presentation on compliance and third party due diligence here, which outlines best practice steps towards achieving due diligence on 100% of third party relationships in a cost-effective manner with ethiXbase 2.0. Enjoy!
BCG’s 2018 global challengers—100 rapidly globalizing companies from emerging markets—are getting ahead of the competition by using digital technologies.
The Key to Fixing the Problems with Strategy | A.T. KearneyKearney
For too many years, companies have been hobbled by the vicious cycle of busy thinking, frenetic activity, bureaucratic planning, and other hallmarks of today's corporate strategies. Research confirms the negative effects these conditions have on strategic output. Recognizing that new thinking was needed to reclaim strategy, A.T. Kearney set out to write the next chapter and set a new course for the future of strategy.
The FutureProof approach to strategy was developed by A.T. Kearney in response to the deteriorating state of strategic output among today’s organizations. Motivated by research, inspired by some of the most visionary strategic thinkers, and tested in client engagements, FutureProof Strategy promises to turn the tide of futile strategic exercises by bringing together three powerful principles: future inspiration, organizational inclusion, and a portfolio approach to capturing competitive opportunities. Used in combination, these principles transform strategy from ineffective, sequential, top-down instruction to purposeful and ongoing strategic competitive domination.
FUTURE PROOF® is a registered trademark of Toffler Associates, Inc.
The best digital transformation frameworks in 2020run_frictionless
We review digital transformation frameworks from the world’s top digital transformation consulting companies. PwC, McKinsey, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology.
> Read the full review here: http://bit.ly/31e9dtP
In this talk, I have discussed the issues around the need to recognize the business problem being solved, how to identify that, etc. rather than only focusing on the tech.
Apache Hadoop Summit 2016: The Future of Apache Hadoop an Enterprise Architec...PwC
Hadoop Summit is an industry-leading Hadoop community event for business leaders and technology experts (such as architects, data scientists and Hadoop developers) to learn about the technologies and business drivers transforming data. PwC is helping organizations unlock their data possibilities to make data-driven decisions.
AI and the Future of Work [TUG-CO, 11/15/23]Matt Small
This talk was given to the Tech User Group, Central Oregon on November 15th, 2023.
~~
AI revolutionizes the way we interact with information. It will change the way we work. In this talk, we will introduce the fundamental concepts and the latest research and policies in the field. We will then explore numerous opportunities and societal challenges related to technology adoption, work augmentation and identity. Finally, we will introduce Personal AI and the mission of Kwaai Lab.
Kwaai Lab, a non-profit, volunteer-based open-source AI lab, is composed of researchers, architects, developers, and philosophers. Our goal is to design and implement the tools, fundamentals, and policies that empower us all to own our own Personal AI assistants.
Government as a platform: 2018 GaaP Readiness Indexaccenture
Accenture research identified which factors play a crucial and mutually enforcing role for implementing GaaP in depth and at scale. Learn about the four pillars of GaaP readiness.
Neill Blundell provides an update of recent bribery activity around the world and discusses whether it is a real issue for business or merely an overstated problem.
Bribery and corruption - where is it on your agenda?
French Trade Commission Group
19 April 2012
Lewis Rangott
Ernst & Young
Plus de contenu sur http://australie.cnccef.org
Under cyber attack: EY's Global information security survey 2013EY
Under cyber-attack, EY's 16th annual Global Information Security Survey 2013 tracks the level of awareness and action by companies in response to cyber threats and canvases the opinion of over 1,900 senior executives globally. This year’s results show that as companies continue to invest heavily to protect themselves against cyber-attacks, the number of security breaches is on the rise and it is no longer of question of if, but when, a company will be the target of an attack.
For further information, visit: http://www.ey.com/GL/en/Services/Advisory/Cyber-security
Beyond Asia - Strategies to support the quest for growthEY
Asian companies are on the move. Once viewed by Western multinationals primarily as a source of low-cost labor and manufacturing, Asian players are now international players in their own right. They are expanding into new markets for a variety of reasons.
http://www.ey.com/GL/en/Issues/Driving-growth/Beyond-Asia---Playing-for-high-stakes---the-strategic-challenges
Our Growing Beyond program explores opportunities across expanding into new markets, finding new ways to innovate & implementing new approaches to talent.
www.ey.com/growingbeyond
EY global cleantech public pure-play (PPP) company analysis.
The PPP universe comprises the public companies in the Bloomberg New Energy Finance (BNEF) database classified as deriving 50% to 100% of their total value from clean energy as of April 2013. The financial results of companies that report in non-US currencies were converted to US dollars using theexchange rate that was obtained at the end of their respective fiscal years.
A report looking at comparative rankings of cities specifically
within APEC across multiple indicators; including housing, hard infrastructure, cultural vibrancy, tolerance and inclusion.
Customer-centric IT - Enterprise IT trends and investment 2013EY
Improving the bottom line is the key focus for Indian CIOs in FY13-14. Based on the survey of over 180 Chief Information Officers (CIOs) from various companies across major industries, this report highlights how priorities have changed in response to the fluctuating economic scenario globally and in India.
For more information, visit: http://www.ey.com/IN/en/Home
2015 European Insurance CRO survey – Findings and key themesEY
Get insights about the current state and changing dynamics of risk functions and the evolving role of group CROs.
For more information, please visit our website: http://www.ey.com/GL/en/Industries/Financial-Services/Insurance/ey-insurance-cro-surveys-findings-from-europe-us
The use of public office for private gain, or in other words, use of official position, rank or status by an office bearer for his own personal benefit.
Cost of corruption exceeds by far the damage caused by any other single crime
Looking beyond the obvious - Globalization and new opportunities for growthEY
The changing face of globalization will have a profound impact on the business landscape. A constant challenge for business leaders is to anticipate and interpret how globalization is changing, while understanding the opportunities and risks it creates. Although there may be little they can do to change global demographic shifts or capital flows, business leaders can react effectively to the forces of globalization or, even better, anticipate them to their advantage.
Looking beyond the obvious: globalization and new opportunities for growth, looks at the most important elements of globalization for business. Drawing on three sources of research, including Ernst & Young’s 2012 Globalization Index, we explore the trends and issues business leaders must consider to move ahead.
In this uncertain world, companies will need to look for growth in new ways and from new places. The businesses that will ride the next wave of economic growth will be those that understand the significance of globalization and tailor their strategies accordingly.
www.ey.com/globalization
Innovating for growth: Innovation 2.0 - A spiral approach to business model i...EY
There is no question that innovation is one of the most powerful ways to drive business growth in today is challenging economic environment. But innovation is changing, allowing companies of all sizes and from all geographies to compete with traditional multinationals, thus disrupting markets.
http://www.ey.com/GL/en/Issues/Driving-growth/Growth-through-innovation---The-innovation-spiral
Our Growing Beyond program explores opportunities across expanding into new markets, finding new ways to innovate & implementing new approaches to talent.
www.ey.com/growingbeyond
Imitating traditional development paths is impossible for emerging economies. The World Economic Forum, in collaboration with BCG, suggests that health systems in emerging economies need to make the right investments now to avoid problems that developed economies have encountered.
Unternehmenskäufe chinesischer Investoren in Deutschland steigen auf Rekordhoch EY
Deutschland ist für chinesische Unternehmen der Top-Standort in Europa. Die Zahl der Übernahmen deutscher Unternehmen stieg 2016 um 70 Prozent, der Wert hat sich von 530 Millionen auf 12,6 Milliarden Euro vervielfacht. Lesen Sie, was Chinesen an deutschen Unternehmen so attraktiv finden.
Our latest biopharma-partnering survey highlights the qualities that sell-side companies are looking for in a licensing partner and ranks the industry’s top-tier partners.
View our infographic for highlights from the survey: http://on.bcg.com/14BlGJ8.
Supply/value chain hot topics for today and tomorrow
Center-led principal and value-added services structures
Supply chain best practices
- Using strategic business processes to impact performance
- Inventory and working-capital management
- Governance and compliance
Industry trends and drivers
- Collaborations
In this inaugural publication, we look at the current key antitrust trends, focusing not only on established regions for antitrust such as the EU and the US but also growth regions such as Asia Pacific, Africa and the Middle East – looking at both merger control and antitrust enforcement. We highlight the main merger control risks for businesses contemplating an M&A transaction and consider practical ways of avoiding or minimising those risks. We also shine a spotlight on three sectors that have experienced particular scrutiny from the authorities of late: financial services, information technology and pharmaceuticals.
Fighting Private Sector Corruption And Fraud[1]Alphons Ranner
Understanding of anti-corruption legislation by the private sector is insufficient
Assessment is needed of the companies’ vulnerability to corruption risk in all areas of business and their potential exposure and liabilities under domestic and foreign laws
Overcoming compliance fatigue - Reinforcing the commitment to ethical growth ...EY
This presentation is based on EY FIDS' 13th Global Fraud Survey. It highlights the state of fraud, bribery and corruption, comprising global as well as India findings.
For further information, please visit: http://www.ey.com/FIDS
The importance of illicit flows for developing countries 1. Every year huge sums of money are transferred out of developing countries illegally. Figures are heavily disputed, but illicit flows are likely to outstrip ODA and inward investments. The most immediate impact of such illicit flows is a reduction in domestic public and private expenditure and investment, which means fewer jobs, hospitals, schools, less infrastructure – and ultimately less development. 2. The term illicit financial flows is very vague, but it generally refers to a set of methods and practices aimed at transferring financial capital out of a country in contravention of national or international laws. In practice an “illicit financial flow” ranges from something as simple as a private individual transferring funds into his/her account abroad without having paid taxes on the funds, to highly complex money laundering schemes involving criminal networks setting up multi-layered multi-jurisdictional structures to hide ownership and transfer stolen funds. Some multinational companies take advantage of weak legal frameworks, low technical capacity or corrupt officials to avoid paying their full share of taxes. 3. OECD ministers have long recognised the need to ensure that OECD countries’ policies and practices are consistent with their development objectives, and not damaging to developing countries – referred to as policy coherence for development (PCD). The OECD Strategy on Development has recognised illicit financial flows as an issue of central importance, given their damaging impact on developing countries’ ability to mobilise their own financing for private and public sector investments. Work is underway on various parts of this complex agenda, and this report is one element of the OECD effort. 4. Illicit flows are a symptom of deeper governance failures, and are just one element of a wider set of challenges faced by many countries. High levels of corruption, combined with weak institutions and sometimes illegitimate regimes, are drivers for such outflows. Ultimately, the fight against illicit flows from the developing world must focus on building responsive and effective institutions which deliver services to their population. This will encourage citizens and companies to engage in legal activities, report their earnings and pay their taxes and dues in accordance with national laws. 5. This is a long term endeavour. Identifying, blocking, freezing and returning illegal funds to developing countries are also part of this effort. Since some of these illicit funds find their way into OECD countries, the strength of OECD systems to prevent, detect and return funds is an important element of fighting illicit flows. This issue paper measures this element of the illicit flows agenda: how well are OECD countries implementing their commitments to combat money laundering, tax evasion, bribery and corruption, and to track, freeze and return assets to foreign jurisdictions?
One of NIGERIA’S greatest challenges is CORRUPTION – in Public and Private Institutions – which has greatly affected her development as well as how her Citizens are treated in other countries. This analysis takes an in-depth look TI CPI of Nigeria from 1998 till date.
The bribery act the changing face of corporate liabilityWhite & Case
Five years since its inception, the UK Bribery Act has
significantly raised the bar on corporate liability and
shaken up existing rules on tackling corruption.
This presentation by Emmanuelle AURIOL, Professor of Economics, Toulouse 1 Capitole University, was made during the discussion “Director Disqualification and Bidder Exclusion” held at the 139th meeting of the OECD Competition Committee on 29 November 2022. More papers and presentations on the topic can be found out at https://oe.cd/ddbe
The theme for this quarter is momentum meets uncertainty. The upward trend in crude oil, natural gas, LNG and refined product prices that began in Q1 continued into Q2. Crude oil markets began the quarter just below $100/bbl and have closed below that level on only two days since late April. As we begin Q3, there are increasing concerns about the health of the global economy and how that might affect oil and gas demand.
Quarterly analyst themes of oil and gas earnings, Q1 2022EY
Financial questions continued to attract the most attention of the analyst community, with major focus on how companies will respond to the war in Ukraine, elevated commodity prices and improved cash flows. Strategic questions focused on how the changing geopolitical environment will affect capital allocation in the short and long term. Operationally, all eyes were on the capacity of companies to step up asset utilization and bring new projects to market quickly. Explore the latest EY quarterly analysts themes.
EY Price Point: global oil and gas market outlook, Q2 | April 2022EY
The theme for this quarter is rearrangement. The loss, or potential loss, of Russian oil and gas supplies is forcing producers, refiners and traders to rethink the flow of crude oil and refined products from the wellhead to the gas pump in light of sanctions, potential sanctions and the risk of reputational damage. Countries, companies and consumers will all be searching for ways to adapt, and the outcome of the race to bring alternatives to market could alter the global energy landscape for years to come.
It is likely crude oil and LNG prices will remain elevated for some time. The process of diverting Russian oil through countries unwilling to sanction it will take time and there is little indication OPEC members are willing (or able) to increase production to make up for the loss of Russian crude. Spare capacity sat at 3.7 mbpd at the end of 2021, just above where it was in January 2020. Currently, sanctioned Venezuelan and Iranian production (about 3 mbpd below their peak) could fill the gap, but political and commercial obstacles remain. At today’s prices, US shale production is attractive, but the fastest the industry has been able to grow is between 1mbpd and 2mbpd per year. The LNG infrastructure was already stretched before the war in Ukraine and there is little prosect of finding new supplies soon.
As the largest buyer of Russian energy, Europe will be the epicenter. There is a deeply embedded bias there in favor for renewable energy, and the current crisis is certain to result in an all-out effort to accelerate the build-out of wind and solar power. The capacity to add new green energy is limited though by the project pipeline and supply chains for solar panels and wind turbines, and it is likely that much of the shortfall will be made up with the new LNG infrastructure.
EY Price Point: global oil and gas market outlookEY
As the last quarter of the second pandemic year draws to a close, we continue to see heightened contrast
between the medical and economic points of view. While COVID-19 cases are close to their all-time highs, so
are equity prices, and a leading investment bank declared (on 2 December, 2021 after the Omicron outbreak in South Africa) that it was “optimistic about the possibility of a vibrant 2022.” When news of the variant hit in
late November, the markets were rocked by the prospect of yet another round of local mobility restrictions and
an interrupted return to normal international travel patterns, on top of the Biden Administration’s announced
release of 50 million barrels of crude from the US Strategic Petroleum Reserve. So far though, with OPEC
standing by its planned gradual return to normal production, oil prices have stabilized, albeit below where they
were in mid-November. Henry Hub prices, always at the mercy of the weather, responded predictably to a
warmer-than-normal early winter in the US, falling from US$6.60/MMBtu in early October to below
US$4.00/MMBtu by mid-December. In Europe and Asia, following a short reprieve at the start of the quarter,
piped natural gas prices have spiked again on concerns triggered by Russian troop buildups on the Ukraine
border and uncertainties surrounding the Nordstream 2 pipeline. Looking forward, OPEC and the U.S. Energy
Information Administration (EIA) in their last forecasts of the year both projected that 2022 oil demand would
be above what we saw in 2019. Although time will tell if those forecasts are realized and other events could
intervene, the response to new virus outbreaks is well-practiced and the trade-off between public health and
economic reality has tipped toward a cautiously optimistic view.
EY Price Point: global oil and gas market outlook, Q2 April 2021EY
The theme for this quarter is governed. Apparent market balance at prices that could be sustainable is the product of calculated choices by market leaders and the cooperation of those who follow them. Economics played their customary role as well, with capital scarcity in North America taking about 2 million barrels per day out of the market, about half of the remaining gap in demand. While inventories are close to their pre-COVID-19 levels, there is still uncertainty. The resolution of the pandemic is in sight, but timing is unclear. Vaccine distribution in the US is having an impact but Europe is struggling to contain a third wave of infections. The taps have opened on economic stimulus, but it remains to be seen if policymakers have done enough or if they have overshot the mark.
The shape of the crude oil forward curve has fundamentally changed since the end of the last quarter. In late December of last year, the Brent forward curve was gradually increasing while today, the curve is backwardated. This is a clear sign that the market sees a short-term dynamic that is disconnected from the medium-to-long-term fundamentals. The lasting impact of the COVID-19 pandemic remains to be seen. While many have opined that COVID-19 marks a turning point in energy transition, the IEA recently released a five-year forecast of oil demand that shows steady growth, albeit at rates that are below historical expectations.
Gas markets are a paradox. At the Henry Hub and at LNG destinations, demand grows, investment lags and prices will occasionally attract attention. Traders, so far though, are unconvinced and futures prices don’t indicate imminent scarcity at any link in the value chain.
EY Price Point: global oil and gas market outlookEY
We enter 2021 on a note of cautious optimism for global health, the world economy, and the oil and gas markets. The first weeks of December brought approval in the US and the UK of the first of several COVID-19 vaccines. The speed with which vaccine development occurred is unprecedented, but certainly welcome. In the weeks following the early November announcement of 90+% effectiveness by the manufacturer of the first approved vaccine, the price of WTI crude oil increased by US$10/bbl to US$48/bbl, the highest level since early March. Sustainability hasn’t returned yet, and whatever time it takes to get the world to normal, it will take even longer for normalization within the oil and gas markets. Inventories remain at historically high levels and, optimistically, it will take until April before inventory returns to levels observed in the preceding five years. That’s an estimate, and there has obviously been some difficulty properly calibrating the expectations of how balance will return and how long it will take. In late November, OPEC met to adjust its output plans because of the anemic rebound in demand. In mid-December, the IEA lowered its demand forecast for 2021 due mostly to continued sluggishness in aviation fuel demand.
A mild winter has interrupted a recovery in North American natural gas prices after a run-up motivated by curtailed capital expenditures, upstream activity and production. After an initial meltdown, with cargo cancellations and dramatic price reversal, LNG markets have made a remarkable comeback, and the spread between Asia and Henry Hub has reached a level we haven’t seen in almost three years. It may be the case that interruption in FIDs has brought us to the cusp of a balance that can support reliable returns.
EY Price Point: global oil and gas market outlook (Q4, October 2020)EY
Oil and gas prices have recovered steadily from their lows and are relatively stable, but that stability is supported by the combination of purposeful withholding of production by oil-producing countries and economic stress on upstream independents. Oil prices closed the quarter roughly where they started it, while refining spreads were down slightly. LNG spreads were substantially higher at the end of Q3 than they were at the beginning of the quarter but are still roughly half of what is generally thought of as sustainable.
Going forward, the market will be looking closely at how the economy and demand respond to new developments with respect to a potential COVID-19 vaccine and the US election.
EY Price Point: global oil and gas market outlookEY
As we close the second quarter of 2020, in most of Europe and Asia, the first (and hopefully last) wave of the COVID-19 crisis appears to be abating. In the parts of the US where the virus hit early, the profile has largely matched Europe’s, while in other parts, the urge to reopen businesses has trumped the desire to contain the virus and uncertainty looms. In the developing world, the crisis has just begun, but without the economic headroom and resources necessary to contain it. As the crisis unfolded, the effect on oil and gas demand has been predictable but difficult to gauge precisely and therefore difficult to manage.
Oil prices have crept up steadily as production has been curtailed through coordinated action (OPEC+) and because of economic reality (unconventional oil in North America). That trend has been subject to momentary spasms when bad news hit the market. It would be understandable if traders were nervous, and it seems that they are. Although nowhere near where it was at the peak of the crisis, option implied volatility is still at historically high levels. Gas markets, without the benefit of coordination on the supply side, continue to deal with the market implications of storage at or near capacity. Interfuel competition in power generation has always provided something of a floor, but those lows have been, and will continue to be, tested.
Zahl der Gewinnwarnungen steigt auf RekordniveauEY
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2. “Any competitive
advantage gained through
corruption is a mirage.”
Robert S. Khuzami, Director of Enforcement,
US Securities and Exchange Commission
3. Managing bribery and corruptions risks in the construction and infrastructure industry 1
Introduction 3
Regional and country profiles: 4
Europe 4
The Middle East 6
India 8
Africa 10
What should companies be doing? 12
Eight steps to an effective compliance program 14
How Ernst Young can help 16
Global reach and experience 18
Contacts 20
Contents
4.
5. Managing bribery and corruptions risks in the construction and infrastructure industry 3
Why is bribery and corruption such
a challenge in the sector?
In addition to the bribery and corruption
risks prevalent in all industries,
companies in the sector face a number
of specific risks due to the following
factors:
• Obtaining planning permission and
licenses is a lengthy process and can
be open to abuse.
• Funding by government, public or
private partnerships or by donor
agencies in developing economies
requires many interactions with
government officials.
• The use of subcontractors and
consultants or agents is prevalent,
increasing the risk of third parties
making or soliciting bribes. In our
recent 12th Global Fraud Survey,
respondents from the construction
and infrastructure sector were more
likely than average to see bribery as
common practice in their sector.2
• Joint ventures are commonly used;
indeed, in some jurisdictions it is
necessary to have a local partner
either as a result of legal requirements
or from a commercial perspective.
• Negotiations concerning additions to
specifications and cost overruns are
critical to determining the profitability
of a contract. These negotiations offer
opportunities for consultants or clients
to attempt to leverage payments or
other benefits.
• Many contracts are large, and
decision-making power can sometimes
be concentrated in the hands of a
small number of politically exposed
persons (PEPs).
• Organized crime networks exploit
labor-intensive sectors such as
construction and infrastructure.
This paper offers a perspective on the
bribery landscape across Europe, the
Middle East, India and Africa (EMEIA),
including enforcement trends, risks for
businesses to be aware of and mitigating
steps companies may want to consider.
Introduction
1
Trace International Global Enforcement Report 2011.
2
12th Global Fraud Survey, Ernst Young, 2012.
The construction and infrastructure sector has featured significantly in bribery prosecutions, with
11% of all enforcement activity, since the US Foreign Corrupt Practices Act (FCPA) was introduced,
relating to the sector.1
Recent headline-grabbing cases demonstrate that organizations in these
industries continue to face significant bribery and corruption risks.
6. 4
Europe
Europe is generally seen as a
less corrupt region — but variations
exist
Most European countries rank in the
upper quartile in Transparency
International’s 2012 Corruption
Perceptions Index (CPI). Indeed,
Scandinavian countries are rated
among the least corrupt in the world
(Denmark ranked one, Sweden ranked
four. But other European countries
such as Russia (133), Ukraine (144),
Greece (94), Romania (66) and
Turkey (54) rank significantly lower.
Anti-bribery or anti-corruption
(ABAC) legislation differs
significantly between states
Although 24 European countries have
ratified the OECD Convention on
Combating Bribery of Foreign Public
Officials in International Business
Transactions (the OECD Anti-Bribery
Convention), there are significant
differences in domestic ABAC legislation
across Europe.
Over recent years, many countries have
updated their legislation: the UK
introduced the Bribery Act (effective
from July 2011); Spain and France have
made amendments to their legislation;
Russia has introduced new laws
increasing penalties for non-compliance
and has ratified the OECD Anti-Bribery
Convention. But nearly half of European
countries have not yet codified the
Convention in domestic law and have
underdeveloped ABAC legislation.
Enforcement likely to rise
For much of the last decade, discussion
of ABAC issues in Europe has been
framed by the extra-territorial reach
and enforcement of the FCPA. Europe
still lags behind the US in terms of
enforcement (as of last year, US actions
outnumbered the rest of the world by
three to one). Updated legislation in
many European countries, however,
has given prosecutors the power to
investigate conduct overseas and to
impose significant civil and
criminal penalties.
“Corruption threatens
the integrity of markets,
undermines fair
competition, distorts
resource allocation,
destroys public trust and
undermines the rule of law.”
G20 Anti-Corruption Action Plan
Regional and country profiles
Managing bribery and corruptions risks in the construction and infrastructure industry
7. Managing bribery and corruptions risks in the construction and infrastructure industry 5
Our experience of bribery and
corruption in Europe
Mitigating the risk of bribery and
corruption remains a significant
challenge for corporate boards across
the region. We have observed the
following challenges as being common
to many companies in the sector:
Use of intermediaries — many
Europe-based construction companies
use intermediaries to accelerate the
process of obtaining required permits,
authorizations and customs clearance.
However, there is a risk that fees paid
can be inflated to mask the payment of
a bribe by the intermediary to a
decision-maker.
Increased competition and
challenging market conditions —
new players entering the sector increase
competition for contracts; a belief that
others will be more aggressive can
pressure staff to push boundaries and
take risks that might not accord with
their company’s corporate culture. Also,
current market conditions are placing
increased stress on executives to
deliver growth.
Corporate entertainment —
companies commonly use entertainment
to improve relationships with clients and
ultimately to influence decision-makers.
In many cases, this is legitimate, but it
can be difficult for companies to
determine appropriate limits.
Germany was classed as an
“active” enforcer of foreign
bribery by Transparency
International’s 2012
Progress Report on the
OECD Anti-Bribery
Convention, on the basis of
176 settled cases of foreign
bribery and 43 investigations
in progress. This has made
Germany the most active
enforcer within Europe.
8. 6 Managing bribery and corruptions risks in the construction and infrastructure industry
The Middle East
It is generally perceived that the
risk of bribery and corruption in the
Middle East is high
Many Middle Eastern countries fall
in the lower half of the CPI (the Gulf
Cooperation Council countries and
Jordan are notable exceptions).
Several high-profile corruption
investigations in Western countries
have related to activities in the region.
Many countries have adopted the
United Nations Convention against
Corruption (UNCAC)
UNCAC has been ratified by most Middle
Eastern countries. Oman has not signed;
Saudi Arabia and Syria are signatories
but have not yet ratified. However, the
implementation of the specific policies
continues to pose a challenge.
Enforcement is expected
to increase
The effects of the recent global financial
crisis on the region (particularly for
the real estate market), and the more
recent political unrest in some countries,
is increasing pressure on governments
and leaders to strengthen their ABAC
laws and practices. For example,
Saudi Arabia last year initiated a
crackdown on corruption through the
newly created National Authority for
Combating Corruption.
The Authority’s chairman stated that
their anti-corruption drive would be
targeting “big heads.” In Qatar, a new
anti-corruption committee has been
created, monitoring enforcement of the
ABAC provisions in the criminal
procedures law, and in Bahrain, the
Prime Minister called for new measures
to combat economic crime and the
establishment of an anti-corruption
agency. Despite these developments,
however, progress in tackling corruption
is likely to remain slow.
Our experience of bribery and
corruption in the Middle East
We have seen increasing ABAC measures
in many countries in the Middle East, but
bribery and corruption is still prevalent,
as shown by the numerous FCPA cases
involving conduct in the region.
Our recent experience suggests that
companies should be particularly aware
of the following challenges in the region:
Lack of clear guidance or
process — companies often fail to
provide clear guidance to employees
regarding acceptable and unacceptable
business practices specific to the region,
or the procedures to manage situations
when they arise.
Regional and country profiles
9. Managing bribery and corruptions risks in the construction and infrastructure industry 7
Gifts and “kickbacks” — in the context
of business dealings, the provision of
gifts and kickbacks is common and often
viewed as normal business practice in
the market.
Conflicts of interest — it is common
for conflicts of interest to be overlooked.
For example, sales commissions may be
paid to companies in which management
has an interest; similarly, improper sales
discounts may be provided to parties
connected to the sales team.
Lack of proper tender or contract
award process — control deficiencies
are common, leading to contracts being
awarded by board members and senior
management without effective due
diligence or “not at arm’s length.”
Requests for facilitation payments —
these can be common in areas such as
obtaining visas for employees and
obtaining licenses and planning
permission for new sites. Local
operators can view them as essential to
getting business done. But they are
illegal under the UK Bribery Act and are
under intense scrutiny by external third
parties such as the OECD Anti-Bribery
Working Group.
There have been high-profile
corruption cases throughout
the region. This has resulted
in a greater focus by
governments on the issue
of corruption and the need
for greater transparency
and accountability.
10. 8 Managing bribery and corruptions risks in the construction and infrastructure industry
Recent prosecutions have brought
bribery and corruption to the fore
Bribery and corruption remain a
major challenge in India. The 2012
Transparency International Corruption
Perceptions and Bribe Payers Indices
rank India 94 (out of 176) and 19 (out
of 28) respectively, indicating the
severity of the issue. Twenty-eight
percent of India respondents to our 12th
Global Fraud Survey were willing to make
cash payments to win or retain business,
compared with 15% of respondents
globally.3
Hardening public attitudes
and the need for businesses to secure
foreign direct investment have led to
strengthened ABAC efforts.
Government introducing new
anti-corruption legislation
Indian policy-makers are taking robust
steps to increase the confidence of
investors — corporate and public. In
recent Parliamentary sessions, a number
of important bills were introduced,
including the Prevention of Bribery
of Foreign Public Officials Bill, the
Anti-Corruption, Grievance Redressal
and Whistleblower Protection Bill and
the Companies Bill 2011. In addition to
this, ratification of UNCAC by the
Government in 2011 has helped India
demonstrate its commitment to
improved governance. In another
significant development, the
Government has submitted the Lokpal
Bill, which aims to create stricter
regulations and has given more
credibility to its fight against bribery
and corruption.
The impression of poor
enforcement is changing
The perception that corruption is rarely
prosecuted is changing as a result of
recent investigations and high-profile
prosecutions — for example, the arrest
of former cabinet-level officials in the
2G telecoms license scandal. It is likely
that bribery and corruption will continue
to feature as a political hot topic,
resulting in increased enforcement as
political parties seek to demonstrate
their willingness to act.
Our experience of bribery and
corruption in India
Through our experience of investigating
alleged bribery and corruption in India,
we have observed many changes over
the years and, unfortunately, some
long-standing challenges:
India
3
12th
Global Fraud Survey, Ernst Young, 2012.
Regional and country profiles
11. Managing bribery and corruptions risks in the construction and infrastructure industry 9
Bribes to government officials
remain a serious risk — India’s CPI
score has got worse over the past year.
In some cases, officials have expected
bribes from project officials to release
project funds, for example, where they
hold funds of donor agencies.
Financial manipulation to obtain
financing benefits — promoters or
builders may manipulate financial
statements and valuations to obtain
financing on particularly beneficial
terms. In our recent Global Fraud Survey,
16% of India respondents were prepared
to misstate financial performance,
significantly higher than average.4
Weak records management —
poorly developed systems provide an
opportunity for the manipulation of
ownership documentation, including title
to land rights.
Pressure from project officials —
application of inappropriate
pressure to select a certain agent or
contractor might indicate a hidden
financial interest.
Limited or unreliable information —
in practice, it is often difficult for
companies to conduct due diligence
on contractors, subcontractors and
agents due to poor information. The
introduction of unique identifiers for
businesses by the Government may
improve this situation going forward.
But obtaining complete and accurate
historical information is likely to remain
a challenge.
4
12th
Global Fraud Survey, Ernst Young, 2012.
Corruption is perceived as
being accepted in business
dealings as a way of avoiding
administrative bottlenecks.
Low public sector wages
increase the risk of bribery
for quick favors or
ignoring wrongdoing.
12. 10 Managing bribery and corruptions risks in the construction and infrastructure industry
Africa
Africa is perceived to have a high
risk of bribery and corruption,
but the situation is complex
Although the majority of African
countries are in the bottom half of the
CPI, the rankings of individual countries
vary widely. For example, Botswana is
ranked number 30, ahead of many
European countries, whereas Somalia
is ranked 174, considered the most
corrupt country in the index.
Africa is attractive to many construction
companies because it contains some
of the fastest-growing economies in
the world. Corruption and security
issues, however, are significant barriers
to investment, according to our
recent survey.5
There is no common legislation
governing bribery and corruption
across Africa
The Convention on Preventing and
Combating Corruption was agreed by the
African Union in 2008. The Convention
is a regional agreement setting the
framework for the prevention of
corruption, but this has not driven the
development of a common legislative
approach across the region.
In some countries, inefficient and
opaque political systems are preventing
progress in introducing new legislation.
However, many governments are
strengthening ABAC laws and practices.
Enforcement is increasing
There has been a significant amount of
FCPA enforcement related to business
conduct in Africa across a number of
industry sectors, including construction
and infrastructure. Given the extent of
this enforcement and the media attention
associated with it, some countries are
starting to act. Overall, however, the
level of local enforcement remains low.
Only 10% of the Africa respondents in
our recent 12th Global Fraud Survey
state that regulators in their country
appear willing to prosecute cases of
bribery or corruption and appear
effective in securing convictions.6
Rwanda’s fight against
corruption is paying off.
This country’s ranking in
Transparency International’s
CPI has improved from 89 in
2009 to 50 in 2012.
5
Africa by numbers, Assessing market attractiveness in Africa, 2012.
6
12thGlobal Fraud Survey, Ernst Young, 2012.
Regional and country profiles
13. Managing bribery and corruptions risks in the construction and infrastructure industry 11
Our experience of bribery and
corruption in Africa
Many of the corruption risks in
Africa are heightened due to the
lack of sophisticated systems (paper
records being an integral part of many
business processes) and poor control
environments. Our experience shows
that the following are among the key
challenges facing companies operating
in the region:
Informal payments — improper
payments by businesses in Africa can
arise due to significant levels of “red tape,”
particularly relating to business permits,
licenses and the import of goods.
Use of intermediaries — agents,
brokers and facilitators are used to
“assist” with negotiations. Fees paid to
these intermediaries are often non-distinct
and might be used to disguise bribes.
Petty corruption — petty corruption
can be found in areas such as
identification books, marriage and
birth certificates and driving licenses.
Transparency International’s Global
Corruption Barometer 2010/11 states
that more than 50% of people in
sub-Saharan Africa reported paying
a bribe; more than anywhere else in
the world.
“The demand from people
for the accountable use
of power and an end to
corruption is indeed one of
the key social drivers of
our time.”
Cobus de Swardt,
Managing Director,
Transparency International
14. 12 Managing bribery and corruptions risks in the construction and infrastructure industry
Dealing with bribery and corruption has
always been a challenge for companies
in the construction and infrastructure
sector. The awarding of contracts and
obtaining of planning permission or
permits create particular bribery and
corruption risks, with many of the
enforcement cases in the public domain
relating to these areas.
Key activities of a successful ABAC
program for companies in the sector
include:
• Setting the correct tone at the top. It is
extremely important that ABAC is on
the agenda of senior executives.
• Completing a comprehensive bribery
and corruption risk assessment —
considering the type and location of
projects undertaken so that the
specific risks faced are identified
and understood.
• Once the risk assessment is complete,
reviewing the overall bribery and
corruption compliance program to
determine if it is proportionate to the
risks identified.
• Reviewing existing communication
and training programs to help ensure
that the desired corporate culture is
achieved on the ground, especially
in more remote and higher-risk
locations. In our recent 12th Global
Fraud Survey,7
only 55% of respondents
were aware of anti-bribery training
within their organization.
• Conducting due diligence on
contractors, subcontractors and
agents, with continued monitoring
performed to make sure they comply
with relevant ABAC laws.
• Ensuring that there are clear contracts
with consultants and agents that refer
to ABAC procedures and give the
company audit rights over relevant
contract records. Payments to
consultants should be reviewed and
approved at a senior level of the
organization, including the payment
of expenses.
• Proactively analyzing operational data
on an ongoing basis, using forensic
data analytics to detect transactions
that indicate a heightened risk of
bribery and corruption.
• Monitoring expenses such as
corporate entertainment carefully,
paying particular attention to the
specific recipient, the context and the
timing of the entertainment or gift.
• Undertaking vetting of key employees,
contractors or partners, especially
those unknown to the company, for
example, in joint venture situations.
In our recent Global Fraud Survey,
only 59% of respondents report
using an approved supplier database
and almost half fail to check the
ownership or backgrounds of
third-party suppliers.8
What should companies be doing?
7
12th
Global Fraud Survey, Ernst Young, 2012.
8
12th
Global Fraud Survey, Ernst Young, 2012.
15. Managing bribery and corruptions risks in the construction and infrastructure industry 13
16. 14 Managing bribery and corruptions risks in the construction and infrastructure industry
Eight steps to an effective anti-corruption
compliance program
1Conduct a risk
assessment program
What risks are posed by the nature of the company’s operations; the degree of business
with governmental entities; its use of agents and other intermediaries; the countries it
works in; and the regulatory environment it works under? Identify the policies and controls
in place that mitigate the corruption risk and evaluate their strengths and weaknesses.
2Develop a corporate
anti-corruption policy
There needs to be a clear and unambiguous statement of the company’s position that both
governmental and commercial bribery on any scale will not be tolerated. The policy will
provide operational guidance on such issues as bribing government officials; commercial
bribery; misreporting and concealment in accounting records; facilitating payments,
charitable and community gift giving; and policies covering travel, entertainment and gifts
for government officials.
3Implement anti-corruption
policies and controls
We know that 90% of reported FCPA cases have involved outside agents and business
consultants. Putting in contracting provisions and warranties that include compliance with
legislation and company policy are important controls. It is also key to implement some
form of certification to ensure there has been compliance. Make sure special payments and
approvals are recorded. Do you undertake vendor anti-corruption audits? How does the
company process and deal with employee travel, gifts and entertainment? Develop
guidance that ensures charitable giving ends up in the right hands and gifts are bona fide.
4Implement anti-corruption
financial controls
Implement additional financial controls in high-risk countries and for high-risk operations.
These may include controls around banks accounts and petty cash, executive travel, meals
and entertainment. Transactions with consultants, agents and high-risk intermediaries will
also need enhanced controls.
Implement strict account posting requirements for high-risk transactions, including
sufficient supporting documentation and adequately delegated authority to promote
increased transparency and accountability.
Ernst Young has developed an eight-step program to ensure you have a robust compliance
framework in place:
17. Managing bribery and corruptions risks in the construction and infrastructure industry 15
5Conduct anti-corruption
compliance training
Training is imperative for global organizations operating in countries that have a history of
corruption. Local employees need to understand that your culture may differ greatly from
their own. Training should also be prescriptive and pragmatic — it should explain the
requirements of the FCPA and UK Bribery Act, but also give examples of “red flags” or
difficult situations that may relate directly to them as employees. Training should be
appropriately targeted. It should be based on roles and responsibilities within the company
and be periodically updated for new and transitioning employees.
6
Monitor the program
Organizations need to be able to test for compliance by identifying potential violations or
“red flags.” This is effectively an anti-corruption audit. In the best case scenario, ABC
Analytics can be used as a tool for compliance monitoring. A form of anti-corruption
certification should be designed for employees, which should be re-tested periodically.
Are there tests for compliance with policies and are there concrete and well-understood
consequences of non-compliance?
7
Anti-corruption procedures
in mergers and acquisitions
Companies should conduct appropriate due diligence on potential acquisitions to avoid
the risk of inheriting liability for legacy actions. Compliance with ABAC tenets should be
high on the integration plan and look at all the corruption risks potentially posed by the
new organization. MA checks should not end before the acquisition — they need to be
continued after the integration process.
8
Re-assess risk and
modify program
Corruption risk assessments should be conducted periodically to ensure that the
anti-corruption program is evolving to meet new risks posed by the changing business
and external environment.
18. Global bribery and corruption
risk assessment
We worked with senior client staff to
conduct a bribery and corruption risk
assessment for a major construction
company. Our client had recently
acquired a global construction services
business and needed to ensure that the
new business had a consistent approach
to bribery and corruption risk mitigation.
The review of the new business was
piloted in countries in Asia and Africa.
We developed a bribery and corruption
risk assessment tool that enabled our
client to focus on the ABAC compliance
controls for subsidiary operations.
The tool was used to identify higher-risk
countries and projects in order to
focus resources.
As a result of our work, the company
made remedial changes to key business
practices in high-risk countries.
Investigation into alleged bribes to
government officials in Europe
Our client was subject to an FCPA
investigation as a result of alleged bribes
paid to government officials. We were
engaged to collect and analyze all
documentation relevant to the
allegations. Our international team of
e-disclosure specialists processed
15 million electronic documents over a
three-week period.
We assisted our client and it’s legal
counsel in designing and implementing
robust and efficient disclosure strategies
and helped them deal with various
jurisdictional data privacy concerns.
By using a combination of interviewing
techniques and analysis of the electronic
data, we helped our client in its
submissions to the US Securities
and Exchange Commission (SEC).
Our technology tools and overall
investigation approach allowed the client
to provide timely responses to the SEC.
Investigation in Africa
We were retained by outside counsel to
the audit committee of our client to
investigate concerns raised by a new
finance director.
We conducted interviews and reviewed
customs clearance documents for
multiple years to identify potential FCPA
violations. Our findings were reported
to the board of directors and the
audit committee.
As a result of our work, the company
made improvements in its local policies
and internal controls, as well as its FCPA
compliance program.
Whistle-blower investigation in Asia
We were engaged by an SP 100 company
to lead an investigation in multiple
countries in Asia following whistle-blower
allegations stemming from the company’s
acquisition of a group of companies. We
worked closely with two external law firms,
and with the client’s general counsel and
head of internal audit in each country.
We were asked to report regularly to the
management committee, the external
auditor and ultimately to the SEC.
Our work enabled our client to act
swiftly, leading to voluntary disclosure of
certain FCPA issues identified through
the investigation. In addition, we assisted
external counsel in identifying and
formulating remedial measures.
16 Managing bribery and corruptions risks in the construction and infrastructure industry
How Ernst Young can help
Through our experience in advising on a number of cases in the construction and infrastructure sector,
and our global reach, we are ideally placed to help you to minimize the risk of bribery and corruption in
your business. Some recent case studies include:
19. Managing bribery and corruptions risks in the construction and infrastructure industry 17
20. Countries or territories in which Ernst Young professionals are located.
18 Managing bribery and corruptions risks in the construction and infrastructure industry
Global reach and experience
21. Managing bribery and corruptions risks in the construction and infrastructure industry 19
Our construction and infrastructure network
Our construction and infrastructure team is part of a
7,000-strong global Real Estate practice, serving more
than 4,000 real estate clients worldwide. Our people have
diverse backgrounds and a wealth of experience. Many of
them have served in industry and government, while
others have professional services experience and hold
relevant certifications.
Our team comprises experienced professionals using
sophisticated tools and proven methodologies to meet the
most complex and demanding challenges and provide
commercial and technical services on a global basis. The team
includes forensic accountants, certified fraud examiners,
forensic technology professionals, economists, regulators,
quantity surveyors, architects, project managers and delay
analysts. Our in-depth sector knowledge and experience
allows us to advise clients and their legal advisors in an
efficient manner.
Our global reach and experience
We operate globally, delivering high-quality service, using local
knowledge where our clients operate. We have over 1,600
fraud investigation and dispute services professionals, based in
50 countries, with experience in business integrity, investigations,
disputes and forensic technology.
We are the only major professional services organization to
operate across Europe, the Middle East, India and Africa, under
a single EMEIA structure. We therefore have a borderless
approach to business in the emerging markets of the
Commonwealth of Independent States (CIS), India, the Middle
East and Africa as well as the established markets of Europe.
This enables us to leverage our strengths more efficiently and
move swiftly to bring together our teams to serve our clients,
drawing on our industry experience across all of our services in
87 countries.
Our Fraud Investigation Dispute Services practice
Dealing with complex issues of fraud, regulatory compliance
and business disputes can detract from efforts to achieve your
company’s potential. Better management of fraud risk and
compliance exposure is a critical business priority — no matter
the industry sector. We assemble the right multidisciplinary
and culturally aligned team to work with you and your legal
advisors. And we work to give you the benefit of our broad
sector experience, our deep subject matter knowledge and the
latest insights from our work worldwide.
22. 20 Managing bribery and corruptions risks in the construction and infrastructure industry
For further help and information, please contact one of our specialist or local area representatives or
log on to www.ey.com/fids
Name Role Office telephone Email
Global Leader
David Stulb Global Leader + 44 20 7951 2456 david.stulb@ey.com
Construction Sector
Erik Skoglund Partner + 46 85 205 9939 erik.skoglund@se.ey.com
Kevin Hills Partner + 44 78 6787 5035 khills@uk.ey.com
John Auerbach Partner + 86 21 2228 2642 john.auerbach@cn.ey.com
Amy Hawkes Partner + 1 213 977 3720 amy.hawkes@ey.com
Regional Leaders
John Smart Northern Europe + 44 20 7951 3401 jsmart@uk.ey.com
Philippe Hontarrede Western Europe + 33 1 46 93 62 10 philippe.hontarrede@fr.ey.com
Stefan Heissner Central and Eastern Europe + 49 211 9352 11397 stefan.heissner@de.ey.com
Bob Chandler Middle East + 971 4 7010 765 bob.chandler@ae.ey.com
Arpinder Singh India + 91 22 6192 0160 arpinder.singh@in.ey.com
Charles de Chermont Africa + 27 31 576 8050 charles.dechermont@za.ey.com
Brian Loughman Americas + 1 212 773 5343 brian.loughman@ey.com
Chris Fordham Asia Pacific + 85 22 846 9008 chris.fordham@hk.ey.com
Contacts
23. Managing bribery and corruptions risks in the construction and infrastructure industry 21