AFP charges former CIMIC executive over alleged oil pipeline bribery plot
Former executive has faced court accused of bribing Iraqi officials to win lucrative oil pipeline contracts.
Former Leighton Holdings executive Russell Waugh had his passport confiscated and movements restricted on Wednesday after being arrested by Australian Federal Police at the culmination of a long running bribery investigation.
Mr Waugh made a brief appearance in the Brisbane Arrests Court on Wednesday after AFP officers swooped on his Annerley home as the culmination of an international investigation into the alleged bribery of Iraqi officials to help contracting giant Leighton - now renamed CIMIC - win lucrative oil pipeline contracts.
During Wednesday’s court proceedings, prosecutor Lindsay Glenn, acting for the Commonwealth Director of Public Prosecutions, asked for the matter to be transferred to Central Local Court in Sydney.
The former Leighton Offshore managing director appeared via video link from the Brisbane Watch House, and did not seek legal representation from the duty lawyer.
As part of his bail conditions, Mr Waugh must surrender his passport and is only allowed to possess one mobile phone that will be monitored by the AFP.
The AFP says it has also filed charges against two unnamed former Leighton executives currently residing overseas in respect to the bribery allegations.
The investigation has been running since 2011, when the AFP says it received a report from Leighton – since renamed as CIMIC – about alleged improper payments to win contracts worth $US1.5bn to rebuild Iraq’s oil pipeline infrastructure.
AFP investigators will allege Leighton Offshore Pty Ltd funnelled bribes through entities associated with Monaco-based Unaoil to guarantee approvals for the Iraq oil export contracts, making “suspicious payments” of $US77.6m to Iraqi officials.
The AFP investigation was run in parallel with similar investigations by the UK’s Serious Fraud Office, and the FBI and US Department of Justice.
“For Leighton Offshore Pty Ltd to be awarded the two contracts - which had a combined value of approximately US$1.46 billion (AU$2 billion) - approvals were required from the Iraqi Ministry of Oil and the South Oil Company of Iraq,” the AFP said in a statement.
“AFP investigators will allege Leighton Offshore Pty Ltd funnelled bribes through entities associated with Iyer-associated companies and Unaoil to guarantee approvals for the Iraq Crude Oil Export contracts.”
The key targets of the bribery scheme were allegedly Iraqi Ministry of Oil officials and government officials within the South Oil Company of Iraq.
Investigators identified about $US77.6 million in suspicious payments made via third party contractors, the AFP said.
AFP officers, working with the UK’s Serious Fraud Office, the US Department of Justice and FBI, have seized more than two million documents related to the projects and obtained evidence from 10 countries.
“These efforts reflect the AFP’s and the International Foreign Bribery Taskforce’s ongoing commitment to global cooperation in the fight against corruption,” the AFP statement says.
Arrest warrants were issued this week for three men aged 54, 60 and 62.
The 54-year-old man was arrested Tuesday at his Brisbane home and charged with two federal foreign bribery offences.
“He was also charged with allegedly engaging in conduct to falsify books linked to the corporation, and knowingly providing misleading information.”
AFP Deputy Commissioner Investigations Ian McCartney said Operation Trig investigators “demonstrated outstanding resilience over the past nine years”.
“They persevered through the painstaking process of piecing this jigsaw together from facts and allegations of alleged corruption that reached internationally, to a level that allowed us to bring this before the court in Australia,” he said.
“Their determination to ensure acts of alleged corruption are held to account is a testament to the dedication, skill and tenacious approach of AFP members, and the strength of our partnerships worldwide.”
AFP Deputy Commissioner Investigations Ian McCartney said foreign bribery investigations required strong collaboration with international law enforcement partners to combat corruption on a global scale.
“Operation Trig investigators demonstrated outstanding resilience over the past nine years,” Deputy Commissioner McCartney said.
“They persevered through the painstaking process of piecing this jigsaw together from facts and allegations of alleged corruption that reached internationally, to a level that allowed us to bring this before the court in Australia.
CIMIC said in a statement to the ASX it continued to co-operate with the investigation.
“CIMIC has now been informed by the Australian Federal Police that charges and arrest warrants have been laid against ex-employees. The alleged offences include two foreign bribery offences, and other related matters. The charges relate to conduct occurring prior to 2012,” the company said.
