Global engineering company Layne Christensen used Australian subsidiary to funnel bribes to African officials
/A global engineering company has admitted using its Australian subsidiary to funnel more than a million dollars in bribes to government officials in Africa.
US authorities fined the Texas-based firm, Layne Christensen, more than $US5 million ($A5.7 million) for violations of foreign bribery laws.
Layne Christensen is a 120-year-old drilling, construction and water management company with subsidiaries around the world.
Documents released overnight revealed some of the payments were made through companies controlled by the company's Perth-based subsidiary.
The Securities and Exchange Commission (SEC) said Layne Christensen agreed to pay up more than $US5 million for breaching the country's Foreign Corrupt Practices Act.
The court order for the fines revealed how the company used its Australian subsidiary, Layne Christensen Australia, to pay bribes to officials in Mali, Guinea, Burkina Faso and the Democratic Republic of Congo.
It was a corporate arrangement with many layers.
Perth-based subsidiary was a shell company
The Australian subsidiary was identified as a shell company - a company that administered transactions but did not have any significant assets or real business operations of its own.
The shell company owned another company called Stanley Mining Services.
That company controlled three of its own subsidiaries that operated in Africa, which Layne Australia provided with management and accounting services.
Those three companies were identified as responsible for the payment of bribes to government officials between 2005 and 2009.
The court documents show the biggest amount was almost $US800,000 in bribes given to officials in Mali, Guinea and the Democratic Republic of Congo to reduce the company's tax bills and avoid penalties for late tax payments.
The company also paid bribes to officials in multiple African countries to speed up customs clearance for equipment.
The SEC said the company saved about $US4 million but Layne Christensen cooperated with the investigation, provided witnesses and took steps to make sure bribery was eradicated.
There was no suggestion in the documents that any Australian employees of the company were involved in illegal activities.
There was also no mention of whether Australian authorities took part in the investigation and whether the company faced charges for breaking Australia's foreign bribery laws.
AM contacted the Australian Federal Police and the Australian Securities and Investments Commission about the matter, but no response was provided.