In response to news that Beny Steimetz’s Guernsey-based mining company, BSG Resources, has gone into administration, Global Witness's Head of Investigations Daniel Balint-Kurti, said:
“Mining companies around the world should view this as a salutary reminder of the dangers of engaging in high-level bribery.
“Global Witness investigated BSGR, which was behind one of Africa’s biggest mining scandals. The mining company struck a corrupt bargain with the wife of Guinea’s late military dictator, promising her millions of dollars in bribes for her help to win a world-class iron ore concession. After getting the concession for nothing it resold 51% for $2.5 billion – equivalent to twice Guinea’s budget at the time.
“Although the company denies any wrongdoing and has argued that contracts at the heart of the inquiry are fake, in 2014 a new Guinean government cancelled BSGR’s licences after an official inquiry found they were corruptly acquired. The dispute has sparked numerous lawsuits, some of which are still ongoing.”
Notes to editor:
Global Witness has been at the forefront of investigating BSGR’s corrupt deals in Guinea, revealing the company’s tight links with the dictator’s wife, leaked bribery contracts and an attempted cover-up by one of the company’s agents. See: https://www.globalwitness.org/en-gb/reports/guineas-deal-century/
You might also like
Oil, Gas & MiningReport
Guinea's "Deal of the Century"
It’s not often a story sets out the mechanics of corruption as starkly as the foray by billionaire Beny Steinmetz’s BSG Resources into Guinea.
Oil, Gas & MiningCampaign
Oil, Gas and Mining
Money from oil, gas and mining can help lift entire countries out of poverty in much of the developing world. Properly managed, it can build schools, hospitals and roads, and reduce dependency on international aid. But all too often, the revenue goes missing because deals are done behind closed doors, allowing small, corrupt elites to profit at the expense of ordinary citizens.
New evidence ties BSGR to company behind Guinea mine bribery
Beny Steinmetz Group Resources director set up company that promised bribes BSGR misled with claims Pentler Holdings was set up independently Representatives wired payments to president’s wife Global Witness revealed in April that BSGR and Pentler signed corrupt contracts A director of Beny Steinmetz Group Resources set up a company that signed corrupt deals with the wife of an African president in a multi-billion-dollar mine scandal, Global Witness has learned.