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/
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