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Transaction/Case Details

MagIndustries probed by RCMP over bribery allegations in Congo

BUSINESS SECTOR

Mining & Metals

LEAD OFFICE

Toronto


OVERVIEW

In January 2015, Mag Industries’ Board of Directors formed a Special Committee to investigate alleged violations of the Corruption of Foreign Public Officials Act (CFPOA) and the Criminal Code.  The RCMP is investigating allegations from a whistleblowing accountant at  MagIndustries that his bosses paid bribes to officials in the Republic of Congo to win approvals tied to a potash mine development in that country.   To date, there have been a few significant prosecutions of companies under the CFPOA in Canada (both resulting in penalties in the C$10 million range), so likely this matter will be precedent setting.

The Special Committee formed by the Board engaged McCarthy Tétrault LLP as independent counsel to conduct the Investigation. The mandate of the Investigation extends to the allegations contained in the Information to Obtain the Search Warrant and any new allegations or evidence of corrupt practices by the Mag Industries or its subsidiaries between January 1, 2012 and the present uncovered during the course of the investigation. 

McCarthy Tétrault is advising the Special Committee of the Board with a team led by John Boscariol and David Porter.

 

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