Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Thursday 26 May 2016

Australian Federal Election 2016: alleged corruption in Border Force ranks


Prime Minister Malcolm Turnbull
17 May 2015

The Age, 19 May 2016:

A network of Australian border security officials is allegedly working for organised criminals, including drug and tobacco smugglers, in the most serious corruption scandal to ever hit the nation's border agencies.

A Fairfax Media investigation has uncovered multiple cases of alleged corruption involving staff from the Australian Border Force and the Department of Agriculture, along with maritime industry employees with government clearances…..

The allegations come as the government makes a virtue of its strength on border security, with Prime Minister Malcolm Turnbull claiming the opposition "lack the commitment to keep our borders secure".

However, the federal government and customs chiefs, including the nation's top border security official, Michael Pezzullo, have been repeatedly warned over four years in high-level confidential briefings about significant suspected corruption in the Border Force's ranks, especially in NSW.

Evidence, including NSW police briefing notes and testimony from crime figures, suggests that one of the most vital border security facilities, the NSW Customs Examination Facility, has been compromised by corrupt insiders, enabling criminals to import large amounts of drugs and tobacco undetected. Staff at the facility are responsible for searching containers suspected to contain contraband.

A small network of Department of Agriculture officials responsible for clearing imports into Australia have also been assisting and liaising with known drug traffickers for at least the past five years…..

Fairfax Media has delayed reporting on the border corruption scandal for several months at the request of authorities.

In NSW, evidence uncovered by Fairfax Media from multiple sources, including agency officials, government briefing files and figures with underworld ties, implicates Border Force officials in drug and tobacco trafficking, and leaking to the criminal underworld.

Criminal intelligence suggests one officer has been taking kickbacks of hundreds of thousands of dollars from traffickers, while another has been facilitating importations.

Suspected corrupt officers are still operating.

The latest scandal comes three years after a network of corrupt customs officers was identified at Sydney airport and charged by the federal police. At the time, Mr Pezzullo promised sweeping reforms, including many which have been implemented.

Top security and policing officials, along with corruption experts, called for the nation's federal police watchdog, the Australian Commission for Law Enforcement Integrity (ACLEI) to have its budget dramatically increased and said the Australian Border Force had failed to deal with corruption in its ranks.

Leading corruption expert and former senior judge Stephen Charles, QC, said ACLEI – which, with about 20 investigators out of a total of 55 staff, is among the smallest corruption fighting agencies in Australia – was badly outgunned. Mr Charles said Australia needed an anti-corruption agency with hundreds of staff……
One senior government source said the Australian Border Force was "incapable" of eradicating corruption in its ranks and sometimes dealt with internal integrity issues with departmental sanctions, such as demotion or sacking, rather than by conducting intensive probes that could expose corrupt networks

Read the full article here.

* Photograph found at The Sydney Morning Herald

Monday 18 April 2016

Global corruption of democracy in the 21st Century


The Guardian UK, 11 April 2016:

Because at root, the Panama Papers are not about tax. They’re not even about money. What the Panama Papers really depict is the corruption of our democracy.

Following on from LuxLeaks, the Panama Papers confirm that the super-rich have effectively exited the economic system the rest of us have to live in. Thirty years of runaway incomes for those at the top, and the full armoury of expensive financial sophistication, mean they no longer play by the same rules the rest of us have to follow. Tax havens are simply one reflection of that reality. Discussion of offshore centres can get bogged down in technicalities, but the best definition I’ve found comes from expert Nicholas Shaxson who sums them up as: “You take your money elsewhere, to another country, in order to escape the rules and laws of the society in which you operate.” In so doing, you rob your own society of cash for hospitals, schools, roads…

“Those who exited our societies are now also exercising their voice to set the rules by which the rest of us live”

But those who exited our societies are now also exercising their voice to set the rules by which the rest of us live. The 1% are buying political influence as never before. Think of the billionaire Koch brothers, whose fortunes will shape this year’s US presidential elections. In Britain, remember the hedge fund and private equity barons, who in 2010 contributed half of all the Conservative party’s election funds – and so effectively bought the Tories their first taste of government in 18 years.

To flesh out the corrosion of democracy that is happening, you need to go to a Berlin-born economist called Albert Hirschman, a giant in modern economic thinking. Hirschman died in 2012 at the age of 97, but it’s his concepts that really set in context what’s so disturbing about the Panama Papers.

Hirschman argued that citizens could protest against a system in one of two ways: voice or exit. Fed up with your local school? Then you can exercise your voice and take it up with the headteacher. Alternatively, you can exit and take your child to a private school.

In Britain and in America, the super-rich have broken Hirschman’s law – they are at one and the same time exercising economic exit and political voice. They can have their tax-free cake and eat it……

Thursday 14 April 2016

May is likely to be an interesting month in 2016


All around the world directors, shareholders, beneficial owners, mob bosses, drug lords, gun runners and owners of stolen art hiding within shell companies in low tax jurisdictions will be marking their calendars…..

AFR Weekend, 8 April 2016:

The ICIJ, which has said it will not provide data to regulators, plans to release the names of more than 200,000 Mossack Fonseca companies, trusts and foundations in May, including names of directors, shareholders and beneficial owners.
Tax authorities can use this data to seek further documents under tax treaties with many jurisdictions....

Thursday 7 April 2016

Australian Federal Election 2016: nowhere to run to, nowhere to hide


It is not just individual taxpayers who should be worried about being caught out using Panama-based firm Mossack Fonseca & Co to allegedly hide unexplained wealth or avoid/evade tax on income earned in this country.

The Turnbull Government should also be worried because this story is likely to run right through the federal election campaign this year and, it is not outside the realms of possibility that names will surface which include known Liberal Party political donors.

It is already a problem for the Prime Minister and Cabinet because along with many other federal government departments/agencies, the Australian Dept. of Defence and Department of Immigration and Border Protection have previous and current contracts with Wilson Security Pty Ltd, a client of Mossack Fonseca.

Neither Defence nor Immigration appear to have conducted genuine due diligence on this company during tender processes, as evidence by their response here and here.

On 4 April 2016 ABC News reported:

Leaked documents have revealed that two brothers embroiled in a massive Hong Kong corruption scandal were ultimately in control of an Australian security company that earned roughly half a billion dollars in lucrative government contracts.

The two billionaire brothers, Thomas and Raymond Kwok, were charged with bribing a Hong Kong government official in July 2012 in a case that shook the Hong Kong establishment.

Soon after their arrest, the leaked documents, obtained by the ABC's Four Corners, show the brothers covertly remained directors of the offshore company that ultimately controls Wilson's operations in Australia — Wilson Offshore Group Holdings (BVI) Limited…..

In December 2014, Thomas Kwok was convicted of the bribery offences and sentenced to five years in prison.

His brother Raymond Kwok was acquitted of all charges.

According to Jason Sharman, professor at the Centre of Governance and Public Policy at Griffith University, the "common sense" definition is that the company listed as the ultimate holding company is "not only the legal owner but the entity in control," he said.

"You would expect that if you've got a company at the top of the chain that is in control of a lot of assets, people would really want to know who they are working for, who they are owned by and who they are being directed by," said Professor Sharman…..

Since the arrest of the Kwok brothers in July 2012, Wilson Security secured a sub-contract to provide garrison services for Australia's offshore detention centres on Nauru and Manus Island as well as various other contracts with Defence, The Australian Tax Office and the Department of Prime Minister and Cabinet.

The Kwok brothers maintained effective control as directors via a covert manoeuvre facilitated by Mossack Fonseca.

Two weeks after the brothers were charged, both Thomas and Raymond Kwok removed themselves as directors from Wilson Offshore Group Holdings (BVI) Limited but replaced themselves with two mysterious new directors that were companies, Winsome Sky and Harmony Core.

The leaked files show the directors of those mystery companies were in fact the Kwok brothers themselves.

Thomas Kwok signed on as the director of Winsome Sky on July 30, 2012, and on the same day Raymond signed on as the director of Harmony Core……

Wilson Offshore Group Holdings (BVI) Limited was originally registered in 1991 under a different name, Covert Investments.

Thomas and Raymond Kwok, as well as their older brother Walter, were early directors of Covert Investments before it changed its name to Wilson Offshore Group Holdings (BVI) Limited in 2004.

BACKGROUND

The company founded by Jürgen Mossack and Ramón Fonseca says of itself:

Established in 1977, the Mossack Fonseca Group is a leading global company which provides comprehensive legal and trust services.
With over 500 staff members across every continent, the Mossack Fonseca Group provides excellent services based on more than 35 years of experience. As part of its added value, the Group offers personal advice and a world-class online experience through a virtual Client Portal which is available 24 hours a day. Our web-based Client Information Portal application allows clients to reserve companies online, verify the status of companies, and pay invoices, in addition to other transactions.
Our service and research-oriented professionals specialize in trust services, wealth management, international business structures, and commercial law, among other areas.
Our product and service portfolio is constantly updated and renewed, enabling the Group to find the appropriate solution for your business. We offer research, advice and services for the following jurisdictions: Belize, The Netherlands, Costa Rica, United Kingdom, Malta, Hong Kong, Cyprus, British Virgin Islands, Bahamas, Panama, British Anguilla, Seychelles, Samoa, Nevada, and Wyoming (USA).
Our law firm has specialized attorneys experienced in all areas of law such as shipping, immigration, contracts and intellectual property, as well as commercial law in general. We also assist clients in physically relocating to Panama and supporting them with regard to all of the steps required, from handling immigration matters and buying or renting property to establishing their business in Panama.

Australian Taxation Office media release 4 April 2016:

ATO statement regarding release of taxpayer data

Recently, the ATO received data in relation to a Panamanian law firm containing names of a significant number of Australian residents. Currently we have identified over 800 individual taxpayers and we have now linked over 120 of them to an associate offshore service provider located in Hong Kong.

These cases relate to the release of data by transparency or media organisations in Australia and overseas. ATO intelligence on tax evasion comes from a variety of sources, including from concerned citizens, advisers, partner agencies and international bodies. For example the ATO has raised tax liabilities of around $400 million from data supplied by confidential informants.

Deputy Commissioner Michael Cranston said that since the completion of the offshore disclosure initiative 'Project DO IT', the ATO has ramped up its compliance work to deal with those taxpayers who have failed to disclose offshore income and assets. Sharing information and coordinating action closely with other tax administrations is a large part of this work.

"We promised the community that following Project DO IT we would continue to build our intelligence base, undertake audits, apply significant penalties and refer the worst cases for criminal investigation" Mr Cranston said.

"We have been analysing the latest data against information these taxpayers had reported to the ATO and against the information we already have. We are also working closely with the AFP, Australian Crime Commission and AUSTRAC to further cross-check the data and strengthen our intelligence. Some cases may be referred to the Serious Financial Crime Taskforce.

This Taskforce builds on the success of Project Wickenby where we raised $2.29billion in tax liabilities and there were 46 criminal convictions.

"The information we have includes some taxpayers who we have previously investigated, as well as a small number who disclosed their arrangements with us under the Project DO IT initiative. It also includes a large number of taxpayers who haven't previously come forward, including high wealth individuals, and we are already taking action on those cases" Mr Cranston said.

"Through data analysis we have been able to identify patterns such as clusters of individual taxpayer and advisers for further investigation."

"The message is clear - taxpayers can't rely on these secret arrangements being kept secret and we will act on any information that is provided to us" Mr Cranston said.


More than 11.5 million documents have been leaked from Mossack Fonseca's files, revealing the secrets of hundreds of thousands of clients – including several thousand Australians – covering a period over almost 40 years, from 1977 until as recently as last December.

The release of the documents on Monday follows a 12-month investigation by media groups including The Australian Financial Review, led by the International Consortium of Investigative Journalists (ICIJ) in Washington…..

The files show how Mossack Fonseca thwarted Australian regulators and police inquiries, continued to act for individuals accused of fraud and embezzlement, and lobbied actively to prevent Australia from signing agreements that would allow the exchange of tax information with Samoa, a key tax avoidance jurisdiction.

While most investors and corporations who use tax havens have legitimate reasons to use these structures, the leaked records also show some companies domiciled in tax havens were being used for suspected money laundering, arms and drug deals, and tax avoidance.

"Some cases may be referred to the Serious Financial Crime Taskforce," ATO deputy commissioner Michael Cranston told the Financial Review, confirming the Australian link with Mossack Fonseca.

The data includes high wealth individuals "and we are already taking action on those cases", Mr Cranston said.

"ATO intelligence on tax evasion comes from a variety of sources, including from concerned citizens, advisers, partner agencies and international bodies…..

Mr Cranston said some of the Australians under scrutiny had previously been investigated by the Tax Office but the probe included a "large number of taxpayers who haven't previously come forward".

The ATO investigation is based on a smaller set of files detailing Mossack Fonseca's Luxembourg operations, which were sold to the German government by a former employee, triggering scores of raids by tax investigators who targeted Commerzbank​ clients in Germany in February last year.

German newspaper Süddeutsche Zeitung​, working with the ICIJ, subsequently obtained much more extensive files, with a total 2.6 terabytes of data for Mossack Fonseca's entire global operations, from an anonymous informant. No payment was made……

The Panamanian firm is one of the top five global groups providing corporate registry services in 21 low-tax jurisdictions around the world for more than 214,000 companies, trusts and foundations, providing an essential services for legitimate companies and investors, including BHP Billiton.

But the files show that the firm also protects its less reputable clients, keeping Swiss advisory firm Strachans on its books despite a decade of Project Wickenby investigations initially focused on Strachans that led to 46 criminal convictions, including a jail term for a Strachans partner, Philip de Figueiredo.

Another Wickenby target, Rockhampton-born lawyer Peter Borgas, based in Switzerland, remained a valued Mossack client even after he was arrested in Sydney in 2013 (the charge was dropped five months later).

Last December, Mossack decided it would not act on its probity concerns for a firm controlled by Tan Yixin, a Chinese executive jailed for 3½ years for bribes and leaking secrets to Australia's Rio Tinto, because "the client will destroy us with their comments" in the high-growth Chinese market.

When the Australian Federal Police wrote to Mossack Fonseca's British Virgin Islands office in July 2012 to enforce an Australian court order to sell a Perth apartment on which a BVI company, Anchorville Holdings Ltd, allegedly held a mortgage, Mossack replied that Anchorville had been struck off in 2007 and asked the AFP to stop sending letters.

Perth entrepreneur Roger Bryer had lived for a decade in the spectacular Perth penthouse, which was tied up in lengthy criminal trials over a $US15 million ($19.5 million) embezzlement case involving Commerzbank. Most of the proceeds had been transferred to Australian accounts controlled by Mr Bryer, to invest. Mr Bryer told police he had no knowledge the money was stolen. It was not suggested that he had acted improperly.

In 2012, the DPP applied to sell the penthouse as part of the proceeds of crime, but Anchorville had been set up as mortgagee on it.

Rebuffed by Mossack Fonseca, the AFP obtained a BVI search warrant in November 2012. A Mossack executive produced old documentation showing Anchorville was owned by yet another nominee company.

Meanwhile, Mossack had contacted the original registered owner of Anchorville and offered to reinstate the company, for $5487. As part of that reinstatement, new documents were registered in 2013 that showed that Bryer had owned Anchorville since 2001.

Mr Bryer told the Financial Review on Sunday that he had made it clear to the AFP that he controlled Anchorville and the matter had been completely resolved in a confidential settlement with the AFP and DPP on February 6, 2013.

While Anchorville was set up as a mortgagee company, its mortgage on the penthouse was not valid.

"I have very grave doubts as to whether they were acting legitimately," Mr Bryer said of Mossack Fonseca. "None of it was credible for that company."…..

In 2008, Sydney developer George Ghossayn​, who at the time was a regular in the appointment diary of Labor powerbroker Eddie Obeid​ before later switching his support to the Liberal Party, was setting up an offshore partnership with fellow developer Fouad Deiri​, in a BVI company, Fitall Development Limited.

In September 2013, convicted cocaine dealer-turned-Queensland property developer Joseph Frangieh​ took control of a Seychelles company, Silver Tiger Enterprises Limited.

In late 2011, sports promoter Dominic Galati​ was publicly challenging to replace Frank Lowy as chairman of Football Federation Australia, "because I believe that someone has to be a voice out there for the people that are passionate about this game".

Behind the scenes, Galati was involved in setting up half a dozen companies in Samoa, which were transferred to a new Hong Kong company, Global Wealth Group, controlled by Galati, William Aloisi, John McGeary and Roy Bijkerk.

William Aloisi's website describes him as an investment banker. Mr McGeary is a greyhound trainer, while Bijkerk is a convicted cocaine importer who has built a property empire through Guardian Care Properties.

A remarkable 269 shareholdings of companies in the British Virgin Islands, Samoa, the Seychelles and Panama, almost all of them holding bearer shares, are linked to just four addresses on the Gold Coast associated with family members of Ian Taylor, a New Zealand businessman who, with his father Geoffrey Taylor, has set up shell companies that have since been linked to arms deals, Mexican drug lords and Russia's largest tax fraud.

There has been no suggestion of illegality by the Taylors.

Ian Taylor has previously told Fairfax that "only a small handful" of their companies were misused.

"Clients of certain nationalities are discriminated against only due to their citizenship.

Read the full article here.

The Australian, 4 April 2016:

More than 1000 Australian links to companies have been found in a data leak of millions of documents from a Panama law firm…..
The passports of hundreds of Australian citizens connected to companies as directors, shareholders and beneficial owners, are included according to the ABC.

Tuesday 5 April 2016

Liberal Party of Australia going into the 2016 federal election campaign with tattered petticoats


On 31 March 2016 The Australian revealed the names of political donors that the Liberal Party of Australia had been attempting to deny to the Australian Electoral Commission.

It is noted that property developers are banned from making donations to political parties standing for election in New South Wales.

It is noted that the Free Enterprise Foundation donated $75,000 to the NSW division of the Liberal Party in 2013-14, $225,00 to the federal division of the Liberal Party in 2012-13, $1,250,000 to the federal division in 2013-14 and another $100,000 to the federal division in 2014-15.

Those donors with a red asterisk beside their names are known to have been mentioned (or their representatives gave evidence) during NSW Independent Commission Against Corruption “Operation Spicer” hearings.

This is the list of those names as published, with my annotations:

Donations to the Free Enterprise Foundation ahead of the NSW 2011 state election
Date, donor, amount

5/11/10: Renlyn Bell Investments *, $9,900 – part-owned by Sydney property developer Garry Bonaccorso through G & R Bonaccorso Family Trust.
5/11/10: DP Smith Enterprises *, $10,000 – involved in building & development.
5/11/10: E & B Pastoral P/L *, $500 – co-owner of industrial units.
5/11/10: Walker Pearse P/L *, $500 – Central Coast business consultant, former interest in retirement village.
5/11/10: PJC Holdings P/L *, $2,000 – said to be a company connected with Arthur Maroon of Beraci Pty Ltd, a housing construction company.
5/11/10: Belside P/L *, $10,000 – directors Sam Maroon and Joe Becharra.
5/11/10: ANZ Real Estate Consultants *, $5000
5/11/10: Naletran P/L *, $3000
18/11/10: Myall Coast Health *, $500 – currently owned by Ochre Health Group.
18/11/10: Australbricks *, $5000
6/12/10: Big Country Developments *, $9900 – NSW property development company operating since 1958, sole director Peter Heskey.
6/12/10: Anthony Shepherd *, $1500 - chairman of then Liberal Prime Minister Tony Abbott's Commission of Audit.
9/12/10: TSM Projects P/L *, $750 – property development.
9/12/10: Precinct 8C Wadalba Lobby Group *, $4000 – group of land owners pushing to have their Wadalba land re-zoned for subdivision.
9/12/10: Threshold Developments P/L *, $2000 – March 2013 land rezoned at Wadalba by NSW Coalition Government.
9/12/10: Everitt & Everitt Executive Super, $750
13/12/10: Tesrol Group Projects P/L, $1499 – land developers possibly belonging to the Tesrol Group of Companies.
13/12/10: Tesrol Bridge St P/L, $1499 - possibly belonging to the Tesrol Group of Companies.
13/12/10: Seasonsrage P/L, $1499
13/12/10: Smeaton Grange P/L, $1499
13/12/10: Rumerone P/L, $1499
13/12/10: Lorset P/L, $1499
13/12/10: Kirkstall P/L, $1499
13/12/10: Epivision P/L, $1499
13/12/10: Dribonn P/L, $1499
13/12/10: Tesrol P/L, $1499 – Tesrol Group of Companies comprising property development and joinery businesses.
14/12/10: Jilliby Stage 2 Land Owners Action Group *, $4000 – 2013 NSW Coalition Government attitude to development in Wyong Valley said to soften.
14/12/10: Holland Fine Art & Cars P/L , $10,000 – In 2013-2014 as a co-defendant the company was successfully sued over sale of forged artwork.
16/12/10: Transnational Storage P/L *, $12,500 – a Tuggerah NSW business.
16/12/10: Boardwalk Resources P/L *, $53,000 – then an unlisted mining exploration and development company with coal exploration assets in NSW & Qld subject to investigation during NSW ICAC. Operation Spicer
16/12/10: Sunbeat Bissap P/L, $10,000 – Chinese global trader of juice, tea and jellies.
16/12/10: Adaptive P/L, $500
16/12/10: T & R Pridham, $500
16/12/10: Adaptive P/L, $800
16/12/10: Aline Pumps Sales & Service *, $1490
16/12/10: JR & JM Pridham, $1500
16/12/10: SFH P/L ATF Stead Family Trust, $600
16/12/10: SFH P/L ATF Stead Family Trust, $375
16/12/10: SFH P/L ATF Stead Family Trust, $500
16/12/10: PR & GA Monks, $1000
16/12/10: RA & EJ Kennard, $1500
16/12/10: T & GM Pridham, $500
16/12/10: JS & SJ Lindqvist, $50
16/12/10: DG Firth & MJ Firth, $1490
16/12/10: DJ & CR Kennard, $1500
16/12/10: Jerry & Debbie Kennard, $1500
16/12/10: KJ & SE Truswell, $1200
16/12/10: Allsteel Products P/L, $1499
16/12/10: EJ & JG Fooks, $1000
16/12/10: BD & RG Gooden, $1499
16/12/10: JP & DR Monks, $1490
16/12/10: Interspan Industries P/L, $1490
16/12/10: The Advance Precision Trust, $1499
16/12/10: NJ & PG Kennard, $750
16/12/10: NJ & PG Kennard, $750
16/12/10: Fooks P/L, $1499
16/12/10: Fooks P/L, $1499
16/12/10: Fooks P/L, $1499
16/12/10: Weltson P/L, $5000
17/12/10: Petra Civil P/L, $2000
17/12/10: Elmslea Land Developments *, $20,000 – wanted land rezoned to expand Elmslea Village, proposal still being progressed by local council in 2015.
17/12/10: Swift Exhaust, $1499
17/12/10: A & SA Davis, $1450
17/12/10: The Heaney Family Trust, $1499
17/12/10: CJ & JR Shore, $1499
17/12/10: Fleetwood Urban P/L, $1499
17/12/10: Windsor Farm Equipment, $1499
17/12/10: Printban P/L *, $10,000 – a property lessor company on the NSW Central Coast associated with Tim Gunasinghe, general manager/ director of Commercialhq a commercial property development company located on the NSW Central Coast specializing in commercial office accommodation, retail shopping centres, specialized retail and commercial development.
20/12/10: Town & Country Lands P/L, $10,000 - lawn and garden service company.
20/12/10: Soul Pattinson *, $50,000 – Washington H. Soul Pattinson has a property investment portfolio, which at the time of this donation had cross-shareholdings with Brickworks since 1969. Soul Pattinson donated $50,000 dollars to the federal division of the Liberal Party in 2012-13.
20/12/10: Brickworks *, $125,000 – brick manufacturing business & property developer through its Land and Development Group. Donated $100,000 to the NSW division of the Liberal Party in 2013-14. and 21/12/10: Westfield Limited *, $150,000 – previously Westfield Development Corporation Limited and now Scentre Limited, a large international property development company registered in NSW. Westfield Limited donated $150,000 to the federal division of the Liberal Party in 2012-13.
22/12/10: Walker Group Holdings *, $100,000 – part of a large property development group established in 1964 and headquartered in Sydney NSW. The Walker Group donated $20,000 to the NSW division of the Liberal Party in 2013-14 and $100,000 to the federal division of the Liberal Party in 2012-13.
Total: $680,214

FEDERAL LIBERAL PARTY DONATIONS

Donations to the Free Enterprise Foundation
Date, donor, amount

28/07/10: Meriton Premier Apartments *, $25,000
29/07/10: Brickworks *, $50,000 – donated $150,000 to federal division Liberal Party in 2012-13.
5/8/10: Xiang Rong (Aust) Inv Group P/L *, $20,000
19/08/10: Crown International Holdings *, $10,000
19/08/10: Vaste Developments P/L, $3000
8/9/10: Lin Mingchi, $5000
Total: $113,000

Monday 4 April 2016

Australian-based companies investigated in international bribery scandal


The story so far......

In 2010 Leighton Holdings Limited thought it was a good idea to employ a 'door opener' to assist in gaining big ticket international contacts through one of its entities Leighton Offshore.

Four years later both the 'door opener' and Leighton were under investigation across multiple jurisdictions for allegedly corrupt conduct, as contractor and sub-contractor the pair had fallen out and a British court ordered the company to pay an additional est. US$18.37 million to its 'door opener' and, the company's credit rating had slumped. 

The then sixty-five year old company was taken over by Spanish multinational 
Actividades de Construcción y Servicios (ACS) and, in 2015 its name changed to CIMIC Group Limited. 

A rough timeline of corruption allegations reported in the mainstream media.......

The Huffington Post, 31 March 2016:

The letter arrived via snail mail, and read like a page from a Le Carré spy thriller. If my newspaper and I wanted to expose a corporate bribery scandal involving the biggest names in the oil business, the anonymous sender wrote, I should place an advertisement in the real estate section of French newspaper Le Figaro in July 2015.
The advertisement must include the code word "Monte Christo".
The sender wanted to protect his identity, and perhaps ensure I was a journalist committed to following a lead around the world. Whatever the intention, his proposition was too intriguing to ignore.
Also piquing my interest was the mention of a mysterious company called Unaoil, run by the wealthy Ahsani family of Monaco……

Unaoil Group legal letter of 29 March 2016 to Fairfax Media Publications:
The Age, 31 March 2016:

A massive leak of confidential documents has for the first time exposed the true extent of corruption within the oil industry, implicating dozens of leading companies, bureaucrats and politicians in a sophisticated global web of bribery and graft.

After a six-month investigation across two continents, Fairfax Media and The Huffington Post can reveal that billions of dollars of government contracts were awarded as the direct result of bribes paid on behalf of firms including British icon Rolls-Royce, US giant Halliburton, Australia’s Leighton Holdings and Korean heavyweights Samsung and Hyundai.

The investigation centres on a Monaco company called Unaoil, run by the jet-setting Ahsani clan. Following a coded ad in a French newspaper, a series of clandestine meetings and midnight phone calls led to our reporters obtaining hundreds of thousands of the Ahsanis’ leaked emails and documents.

The trove reveals how they rub shoulders with royalty, party in style, mock anti-corruption agencies and operate a secret network of fixers and middlemen throughout the world’s oil producing nations…..

Fairfax Media and The Huffington Post today reveal how Unaoil carved up portions of the Middle East oil industry for the benefit of Western companies between 2002 and 2012.

In part two we will turn to the impoverished former Russian states to reveal the extent of misbehaviour by multinational companies including Halliburton. We will conclude the three-part investigation by showing how corrupt practices have extended deep into Asia and Africa….

Western firms involved in Unaoil’s Middle East operation include some of the world’s wealthiest and most respected companies: Rolls-Royce and Petrofac from Britain; US companies FMC Technologies, Cameron and Weatherford; Italian giants Eni and Saipem; German companies MAN Turbo (now know as MAN Diesal & Turbo) and Siemens; Dutch firm SBM Offshore; and Indian giant Larsen & Toubro. They also show the offshore arm of Australian company Leighton Holdings was involved in serious, calculated corruption.

The leaked files reveal that some people in these firms believed they were hiring a genuine lobbyist, and others who knew or suspected they were funding bribery simply turned a blind eye.

But some knew much more. A handful of senior insiders at firms such as Spanish company Tecnicas Reunidas, French firm Technip and drilling giant MI-SWACO, not only actively supported bribery but pocketed their own kickbacks; US defence giant Honeywell and Australia’s Leighton Offshore agreed to hide bribes inside fraudulent contracts in Iraq; a Rolls-Royce manager negotiated a monthly kickback for leaking information from inside the British firm. [my red bolding]

Rest of the article here.

The Sydney Morning Herald, 31 March 2016:

The latest revelations show Unaoil's campaign of corruption spread across the former Soviet states. Leaked Unaoil files reveal that one of the crooked middlemen, Stefano Borghi, who worked with Unaoil in Kazakhstan, was also working with Australian firm WorleyParsons around 2008.

In conjunction with Unaoil, Borghi paid kickbacks to the senior managers who oversaw oilfield contracts. The oilfields were jointly managed by the Kazakhstan government and Italian international oil company Eni.

In return for bribes, Eni managers leaked inside information and rigged tender committees to assist Borghi and Unaoil's multinational clients.

The leaked files revealed that in 2008, Borghi and Unaoil stood to make hundreds of thousands of dollars if they helped a consortium led by WorleyParsons to win a multimillion-dollar contract.

"In case of award to PARSONS or any third party represented by PARSONS, ECO [Unaoil's British Virgin Islands company] shall be entitled to receive a fee equal to 1% (one percent) of the total price of the portion of the contract awarded to PARSONS," a leaked Unaoil memo states.

Another email shows that, in 2007, a senior WorleyParsons manager used Borghi to find out confidential information in Kazakhstan through "the back door".

At the time, Borghi was bribing a corrupt Eni manager whose job was to oversee several large contracts in Kazakhstan. The manager, Diego Braghi, was leaking sensitive information from a tender committee that was considering whether to award the WorleyParsons' consortium a contract on the Kashagan oilfield.

Managers from the consortium asked Borghi to leak information about their competitors, and to get other forms of assistance from tender committee insiders.

Unaoil regarded WorleyParsons as a company able to pay middlemen huge sums to win contracts. Other firms, including US giant KBR, had scaled back these practices due to concerns over corruption.

"WP [WorleyParsons] do not have any of the constraints that kbr … do now and can pay serious fees," Unaoil's memo says.

In the end, for the WorleyParsons manager handling the transaction, this preparedness to do the wrong thing paid off. Worley beat their competitors and won the contract.

In a statement, WorleyParsons confirmed that "Stefano Borghi was an employee of an agent of WorleyParsons."

"At the time the agency agreement was put in place, WorleyParsons had in place rigorous processes to select and appoint agents who provide services to the company," the company said. [my red bolding]

The Sydney Morning Herald, 31 March 2016:
The revelations place intense pressure on the Turnbull government to respond to corporate corruption scandals with the same ferocity they have attacked corrupt unionists. Labor senator Sam Dastyari and independent Nick Xenophon have revealed they will bring forward to April a Senate inquiry into corporate bribery and seek to force allegedly corrupt executives to testify. 

The inquiry will intersect with the Turnbull government's push to pressure the Senate into reviving the Australian Building and Construction Commission. [my red bolding]

Excerpt  from Google Translate’s version of 31 March 2016 Monaco Government press release:

Communiqué of the Department of Legal Services of the Principality of Monaco

Following an urgent request for international judicial assistance in criminal matters from the Serious Fraud Office (SFO) in the UK, and in accordance with international agreements signed by the Principality of Monaco, it was conducted searches at the homes of officers of the Monegasque company UNAOIL and headquartered in the Principality. The leaders of this company were also heard on 29 and 30 March 2016. 

These investigations and hearings were conducted in the presence of British officials, as part of a vast corruption scandal with international ramifications involving many foreign companies operating in the oil sector.....

In continuing fallout from the joint Fairfax Media-Huffington Post investigation into corruption in the oil industry, the Monaco government revealed that it had raided the homes and offices of Unaoil's principals, who ran the company exposed as the global bagman for the oil industry.

Unaoil executives "were also interviewed… in the presence of British officers in connection with a case of vast corruption with international ramifications that involves many foreign companies active in the petroleum sector," the Monaco government's statement said.

Fairfax Media revealed on Thursday that the British police had teamed up with the Australian Federal Police, the US Department of Justice and the FBI to investigate the vast cache of leaked Unaoil emails on which our stories have been based.

Unaoil was hired over almost two decades by large multinational firms, including the offshore arm of Australia's Leighton Holdings, to pay bribes to top overseas officials in return for winning government funded contracts in oil-rich nations.

Fairfax also revealed that the chief executive of Primary Health Care, Peter Gregg, was under criminal investigation over a $15 million payment he allegedly made in a former job as chief financial officer of Leighton Holdings.

He appears to have signed documents making the payment to a United Arab Emirates firm, Asian Global Projects and Trading, to guarantee the supply of steel to the Australian construction giant at "preferred and commercially beneficial" prices. No steel was ever supplied and Fairfax Media has obtained documents revealing the Dubai company that received the money has engaged in bribery and money laundering……

Read the rest of this article here.

The Age, 1 April 2016:
Questions are emerging about how Unaoil operated for so many years with impunity, using bank accounts in New York and London to launder funds and pay bribes between 2000 and 2012, possibly more recently…..

Many of Unaoil’s crooked deals were organised in London, or used UK and US linked middlemen, bank accounts and shelf companies. British authorities appear to have been in the dark about Unaoil and the Ahsanis, who also operate a London property investment company. The British foreign office has even assisted Unaoil overseas, giving Unaoil and its executives briefings and support.

Boing Boing, 2 April 2016:

By week's end, police in the UK, US and Australia announced criminal investigations against top executives, and the Monaco police raided Unaoil's HQ.
But the BBC -- a national broadcaster charged with impartially reporting on the news -- has literally never mentioned Unaoil in any of its online news coverage. Many of the companies involved in the scandal are headquartered in the UK, and some, like Rolls-Royce, are practically synonymous with British industry. Meanwhile, the news coverage has described how Unaoil used the City of London as its go-to money laundry.

The Huffington Post, 4 April 2016:

Halliburton, KBR and other corporate conglomerates relied on Unaoil to deliver them lucrative contracts with corrupt regimes in oil-rich nations. But without the help of banks like HSBC and Citibank, none of Unaoil’s operations would have been possible.
Both Citibank and HSBC declined to comment on whether Unaoil or the Ahsani family, who own and operate the firm, remain their clients.

HSBC and Citibank have histories of corruption. In 2012, HSBC was fined $1.9 billion for laundering drug money and violating U.S. sanctions against Iran. In 2015, it paid Swiss authorities $43 million to settle allegations that it helped the global elite illegally dodge taxes. Citibank was fined $140 million last year for violations of money laundering laws related to its work with an energy company involved in a bribery scandal with the Mexican government. The bank is currently being investigated for its role in the bribery scandal at FIFA, the international soccer organization.

BACKGROUND

The Sydney Morning Herald, 18 November 2013:
Damning evidence has emerged in a court case linking construction firm Leighton Holdings to allegedly corrupt payments of "not less than $25 million in marketing fees" to a Monaco firm to help win Iraq government projects, even though the projects required no marketing.
Leighton's own lawyers recently labelled these payment agreements as "vague and uncertain", while corporate corruption expert Dr Kath Hall, Associate Professor at the ANU College of Law, said they were risky and compared them to the dealings of AWB Limited in Iraq over a decade ago.
Files from the British High Court of Justice case reveal that the fees were contained in deals, known as Memorandum of Agreements (MOAs), struck between Leighton's offshore business and another company, Unaoil, in the last half of 2010 and in early 2011 and aimed at securing oil pipeline contracts in the south of Iraq.
Unaoil operates out of Monaco but is incorporated in the British Virgin Islands, a tax haven with an opaque banking system.
The Unaoil deal is one of two deals linked to the Iraq projects in 2010 - the second involving UAE company Oceanking - that Leighton insiders now concede should have never been struck because they involved payments for services that were undefined and vague.
Leighton only referred the deals to police in November 2011, after external lawyers discovered company files outlining allegations of bribery in Iraq.
The two deals were overseen by former Leighton International director David Savage and former top executive Russell Waugh.
Unaoil has alleged in its court case that the MOAs required the Australian firm to pay pay Unaoil "a minimum price for construction and marketing of $US55 million" in the event that the Iraqi government awarded Leighton the second pipeline contract.
"Furthermore, the parties agreed that Unaoil shall be paid an additional marketing fee of 5 per cent of any amount that Leighton receive on the [Iraq] Project above $US500 million."
"For the avoidance of doubt, the marketing fee paid to Unaoil shall not be less than $US25million."
In documents lodged in court in April this year, Leighton's barrister Sean Brannigan, QC, rejected Unaoil's demands, stating that the MOA between Leighton and Unaoil was "so vague and uncertain that it cannot be given contractual force"
.As federal police bribery investigators continue to investigate Leighton's Iraq dealings, several figures closely associated with Leighton said the MOAs should never have been drawn up. Most corporate anti-corruption programs warn that ''marketing fees'' may be used as a vehicle to pay bribes in overseas business deals.
Former Leighton chief executive Walk King, who departed Leighton at the start of 2011, was also on the board that oversaw Leighton Offshore's initial Iraq contract and initial MOAs with subcontractors.

Mr King said that he had no knowledge of or involvement in the ''so-called second contract'' in Iraq, which is the subject of the British legal dispute between Leighton and Unaoil. [my red bolding]

AFR Weekend, 10 October 2013:

WorleyParsons chief executive Andrew Wood has seized on Leighton Holdings’ bribery allegations to stress his global engineering group will not tolerate any form of corrupt practices.
Amid concerns the scandal could damage WorleyParsons’ reputation, Mr Wood told investors that ethical behaviour was “paramount" to the company’s success.
“Recent revelations of alleged corrupt practices by Australian companies operating overseas we know is a concern to shareholders of a global companies such as ours," he said at WorleyParsons’ shareholder meeting in Sydney.
“I can assure you that at WorleyParsons we have zero tolerance of corrupt practices." Like Leighton, WorleyParsons only banned facilitation payments last year after the Australian Federal Police began an investigation in late 2011 into suspect payments made by Leighton to secure oil contracts in Iraq.

Excerpts from Memorandum of Agreement as set out in the Unaoil Ltd v Leighton Offshore Pte Ltd [2014] EWHC 2965 (Comm) judgment of 12 September 2014 which found in favour of Unaoil:

"MEMORANDUM OF AGREEMENT
WHEREAS
LEIGHTON OFFSHORE and UNAOIL respectively wish to record their irrevocable and binding agreement relating to their collaboration and co-operation in connection with the "IRAQ CRUDE OIL EXPORT FACILITY RECONSTRUCTION PROJECT reference EFP 0910100 (hereinafter referred to as the "PROJECT" and or "JICA") for SOUTH OIL COMPANY (hereinafter referred to as the "CLIENT") in Iraq.
NOW THEREFORE, it is on the basis of the foregoing premise being an integral part this MOA that the Parties hereto agree as follows:
ARTICLE 1 – PURPOSE OF THE MOA
In consideration of the mutual undertakings each Party gives to the other under this MOA, the Parties agree as follows:
1.1 To freely enter into this MOA, in collaboration and co-operation, whereby the Parties agree that such collaboration and cooperation is by way of a sole and exclusive contractor and sub-contractor relationship in respect of the above PROJECT for the UNAOIL Scope of Work (later herein defined).
1.2 That UNAOIL shall immediately following signature irrevocably commit to the further engagement of subcontract resources and the continued incurrence of costs in respect of the above PROJECT for the UNAOIL Scope of Work (later herein defined).
1.5 Save in so far as the Party's respective subcontract arrangements that may be necessary in order to support the purpose and intent of this MOA, or as otherwise expressly provided in this MOA, neither Party shall individually enter into any relationship which is substantially equivalent to that defined by this MOA, in connection with the PROJECT and the UNAOIL Scope of Work with any person or firm other than the other Party to this MOA. For the avoidance of doubt, neither Party shall, whether directly or indirectly, make any other tender to or agreement with the CLIENT or any other party with respect to a work scope that is substantially equivalent to the UNAOIL Scope of Work (later herein defined) on this PROJECT which would thus attempt to circumvent the purpose and intent of this MOA.
1.7 Nothing in this MOA shall create any entitlement whatsoever between the Parties, including any right to damages, costs or expenses in the event LEIGHTON OFFSHORE (or any one of it's [sic] existing or future group companies) is not awarded the contract for the PROJECT by the CLIENT.
ARTICLE 2 – IMPLEMENTATION OF THE MOA
The Parties agree to proceed as follows:
2.1 UNAOIL confirms that it together with any partners with which it works in connection with the PROJECT shall have, the requisite skill, experience, ability and available resources and that it meets, and all such partners shall meet, all requirements at law including holding of all relevant licences to execute the UNAOIL Scope of Work as is hereby subcontracted by LEIGHTON OFFSHORE to UNAOIL in accordance with this MOA.
2.2 Without further payment obligation unless and until LEIGHTON OFFSHORE (or any one of its existing or future group companies) is successful in securing the PROJECT from the CLIENT, LEIGHTON OFFSHORE hereby appoints UNAOIL (or by way of later assignment one of its existing or future group companies, subject to LEIGHTON OFFSHORE approval, which will not be unreasonably withheld or delayed) to be its sub-contractor for the execution of the onshore construction activities (as further defined in Exhibit 1 and 2) in connection with the PROJECT ("UNAOIL Scope of Work").
2.3 Other than those agreements set forth in this MOA, UNAOIL and LEIGHTON OFFSHORE will negotiate in good faith to agree the further terms and conditions of the subcontract for the UNAOIL Scope of Work with such terms and conditions to be on a back to back basis with the terms and conditions contained in the contract between LEIGHTON OFFSHORE and the CLIENT, to the fullest extent such terms and conditions may reasonably and proportionately be deemed applicable in the context of the subcontract and the UNAOIL Scope of Works…
2.5 LEIGHTON OFFSHORE and UNAOIL agree that UNAOIL Scope of Work shall be as set out in Exhibit 1 …
2.6 LEIGHTON OFFSHORE and UNAOIL agree to the commercial points of principle as set forth in Exhibit 3 hereto and, in so far as is necessary and without prejudice to the same, further agree that they will negotiate together in good faith to incorporate the said agreed principles into any further detailed terms and conditions of the subcontract.
2.7 LEIGHTON OFFSHORE and UNAOIL agree an all inclusive price of USD 75,000,000 (seventy five million dollars).
ARTICLE 5 – EFFECTIVE DATE
This MOA is effective and binding between the Parties as of the date of its execution under hand.
ARTICLE 6 – LAW AND DISPUTES
This MOA and any non-contractual obligations arising in connection with it shall be governed by and construed in accordance with the laws of England and Wales.
ARTICLE 7 – TERMINATION
Other than as set out hereunder in this Article 7, neither party shall have any further obligation to the other under this MOA after its termination. Article 3 CONFIDENTIALITY, Article 6 LAW AND DISPUTES and Article 7 TERMINATION shall accordingly remain in full force and effect after its termination. This MOU [sic] will terminate on the earliest of any of the following events occurring:
4. The award of the PROJECT to LEIGHTON OFFSHORE and entry by the Parties into (by mutual consent and formal execution thereof) of a subcontract agreement for the UNAOIL Scope of Work that includes a condition that expressly supersedes this MOA.
ARTICLE 8 –LIQUIDATED DAMAGES
8.1 If LEIGHTON OFFSHORE is awarded the contract for the PROJECT by the Client, and LEIGHTON OFFSHORE does not subsequently adhere to the terms of this MOA and is accordingly in breach hereof, LEIGHTON OFFSHORE shall pay to UNAOIL liquidated damages in the total amount of USD 40,000,000 (Forty million US dollars). After careful consideration by the Parties, the Parties agree such amount is proportionate in all respects and is a genuine pre-estimate of the loss that UNAOIL would incur as a result of LEIGHTON OFFSHORE's failure to honour the terms of the MOA.
8.2 Any liquidated damages payable under Article 8.1 shall be paid by LEIGHTON OFFSHORE to a bank account nominated by UNAOIL in instalments, with one initial instalment of USD 10,000,000 (Ten million US dollars) being made within 30 days of a written demand by UNAOIL, and the balance sum being paid in 14 equal instalments on a monthly basis, commencing in the month following the initial payment, or as may be otherwise agreed in writing between UNAOIL and LEIGHTON OFFSHORE.
ARTICLE 9 – CONTINUED SERVICE PROVISION
9.1 If LEIGHTON OFFSHORE does not subsequently adhere to the terms of this MOA and is accordingly in breach hereof, then notwithstanding and without prejudice to LEIGHTON OFFSHORE's obligation to pay liquidated damages to UNAOIL in accordance with Article 8 but subject always to the strict conformity and adherence of the agreed payment structure set forth therein, UNAOIL will continue to assist LEIGHTON OFFSHORE with the successful execution and completion of the PROJECT for the CLIENT and shall:
•    Provide local knowledge and advice on the preferences of the CLIENT, its partners, the government and governmental agencies.
•    Assist in arranging meetings and maintaining relations with the CLIENT, its partners, the government, governmental agencies and any other business representatives that are deemed desirable for the satisfactory completion of LEIGHTON OFFSHORE's contract.
•    Ensure LEIGHTON OFFSHORE is kept appraised of all requirements the CLIENT may have in relation to the execution of the contract.
•    Provide feedback and monitoring of performance of the CLIENT, its partners and others during execution to ensure a successful contract execution.
•    Provide assistance on possible change orders and guidance relating to invoicing procedures and billing issues if needed.
AGREED COMMERCIAL POINTS OF PRINCIPLE
2. Payment terms
The agreed payment terms are set forth below:
a. Non-refundable Advance Payment of 15.0% of the Fixed Lump Sum Price contained in Article 2.7, which shall be set against each of the Lump Sum Prices contained in Exhibit 2 UNAOIL's Unit Rates / Price Breakdown …
b. Within 30 days of (a) a Non Refundable Pipe Laying Equipment Asset Write Down and Mobilisation Payment of 7.5% of the Fixed Lump Sum Price contained in Article 2.7, which shall be set against each of the Lump Sum Prices contained in Exhibit 2 UNAOIL's Unit Rates / Price Breakdown.
c. Thereafter, monthly progress payments against actual progress of the Work Breakdown Structure activities on the balance of 72.5% of each of the Lump Sum Prices contained in Exhibit 2 UNAOIL's Unit Rates / Price Breakdown …
d.
e. With the exception of (a) and (b) above (which are payable on demand following the opening of the main contract LOC and the receipt of first funds by LEIGHTON OFFSHORE as set forth in (a) and (b)), the period of payment shall be no greater than 45 calendar days …
5. UNAOIL's approval as a subcontract
In the event of a written objection by the CLIENT to UNAOIL's engagement as a sub-contractor to LEIGHTON OFFSHORE, UNAOIL shall in a timely manner seek and obtain approvals for its continued engagement to perform the works as set forth in this MOA. For the avoidance of doubt, should thereafter UNAOIL's continued engagement remain unacceptable to the CLIENT, then notwithstanding the same both Parties hereby agree that UNAOIL shall always continue to be obliged to provide the services set forth in Article 9.1 and LEIGHTON OFFSHORE shall always be obliged, upon the continued provision of those services, to pay UNAOIL in strict accordance with the instalments set forth in Article 8.2. If at such time UNAOIL have already issued the Performance Bond set forth above and in Article 2.10, then LEIGHTON OFFSHORE hereby agree to return the same with a letter of unconditional release from obligation there under to UNAOIL's guarantor bank."

Up until June 2014, the Leighton Group delivered its services through a long-established structure, consisting of Leighton Holdings and five independent, overlapping Operating Companies, being: Leighton Contractors; Thiess; John Holland; Leighton Asia, India and Offshore; and Leighton Properties. In June 2014, Leighton announced a Strategic Review of its operations. This included a transformation of the business operating model. Henceforth the Group will deliver its services through four specialised businesses focused on construction, contract mining, PPPs, and engineering. Refer section titled ‘Strategic Review’ below for further details. The Group also has a 45% investment in the Habtoor Leighton Group, a Middle-East based construction company, and investments in other listed and non-listed entities. [Leighton Group, 2014 Annual Report, p.12]

On 13 February 2012, the Company announced to the Australian Securities Exchange that it had reported to the Australian Federal Police (“AFP”) a possible breach by employees within the Leighton International business of its Code of Ethics that, if substantiated, may have contravened Australian laws. The possible breach related to payments that may have been made by a subsidiary company Leighton Offshore Pte. Limited in connection with work to expand offshore loading facilities for Iraq's crude oil exports. The AFP is investigating the Iraq issue and the Leighton Group’s international business operations. In November 2013, Australian Securities and Investments Commission (ASIC) made public statements about its cooperation with the AFP in the AFP’s investigation. On 28 March 2014, ASIC informed the Senate Estimates Committee that it had commenced a formal investigation into potential breaches of the Corporations Act relating to a number of matters being investigated by the AFP. Leighton is cooperating with the AFP and the ASIC investigations. Leighton does not know when the investigations will be concluded. [ibid, p.106] [my red bolding]

The Sydney Morning Herald, 20 March 2015:
Leighton Holdings has confirmed it will change its name to CIMIC Group as the construction group's new Spanish owners try to distance themselves from corruption allegations, shedding an Australian brand that has existed for more than 60 years.
Leighton has asked shareholders to approve the name change at the company's annual general meeting in Sydney on April 21.
As exclusively reported by Fairfax on Thursday, Leighton Holdings lodged an application to trademark "CIMIC" with IP Australia, the government agency that administers intellectual property rights, on March 3.
CIMIC stands for Construction, Infrastructure, Mining and Concessions.
The name change follows the acquisition of Leighton by Spanish construction group ACS a year ago, and the subsequent restructure of the company…..
Leighton's name dates back 65 years to 1949, when the construction group was formed in Melbourne by Englishman Stanley Leighton.


UPDATE

Financial Review, 4 April 2016:

The Tax Office is investigating more than 800 high net wealth Australian clients of the controversial Panama law firm Mossack Fonseca, which is the focus of an unprecedented leak of tax haven records released globally.
More than 11.5 million documents have been leaked from Mossack Fonseca's files, revealing the secrets of hundreds of thousands of clients – including several thousand Australians – covering a period over almost 40 years, from 1977 until as recently as last December.
The release of the documents on Monday follows a 12-month investigation by media groups including The Australian Financial Review, led by the International Consortium of Investigative Journalists (ICIJ) in Washington.