Date Published: 
04/13/2012

Further to a report by its Board, and the announced (and pending but not ‎yet effective) departure of their CEO for authorizing mysterious payments, ‎the RCMP have done the logical thing and investigated.‎  Two other executives have left the company.  A contractor is in jail in ‎Mexico, and has been interviewed by the RCMP.

The core of the scandal, and presumably the search warrants is a reported ‎‎$55M in likely improper payments, and over $20M missing cash in Libya.‎
The company is distancing itself from ‘rogue’ executives, and cooperating ‎fully with the authorities.

This is the next step in a story which is a long way from over.

 

Risk Management Perspective: 

The Board (in this case, in place of the CEO) has to lead in these ‎circumstances, and the company’s values need to be crystal clear.  There ‎are many ways that a failure to lead in this situation can create damage, ‎from reputation risk, to legal liability, to financial penalties, to the ‎company’s core ethics posture.‎

 

Industry Group: 
Large Enterprises
Industry: 
Other
Country: 
Canada
Risk Class: 
Strategic
Risk Type: 
Reputation
Risk Type: 
Board Risk Processes
Risk Type: 
Leader Risks

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