Law
Task 1:
Resource Development plc is a multinational resource extraction company domiciled and headquartered in the UK. It prides itself on being an ethical company and has a zero-tolerance commitment to bribery and corruption (though it has not yet developed a specific anti-bribery policy). Resource Development specialises in the mining of minerals and aggregates for use in large-scale infrastructure projects and employs 250 people across three quasi-autonomous divisions (Technical and Legal; Sales; Marketing and Strategy). Its business model also makes extensive use of local agents and sub-contractors in the territories where it operates, particularly as to the negotiation of mining rights, licences, and import/export fees.
Resource Development is currently considering an expansion of its commercial operations into larger scale mining activities in various African countries. To facilitate this, Resource Development is considering a joint venture with Rare Earth Trading (a company incorporated in the British Virgin Islands). Since its incorporation in 2020, Rare Earth Trading has rapidly established itself in the extraction sector and operates in multiple sub-Saharan African countries. Rare Earth Trading boasts a 95% success rate in tenders for mining rights.
You have recently been appointed to the Technical and Legal division at Resource Development and have been asked to prepare a report for the Board of Directors of the company covering the following:
• The demarcation between a facilitation payment and bribery. The Board have requested your specific recommendations as to how Resource Development can ensure it does not commit any criminal offences through such payments.
• An assessment of the Bribery Act risks of expanding its mining operations through a joint venture with Rare Earth Trading (and your recommendations as to how best to address those risks)
