Kinross Gold Corporation settles SEC FCPA charge
The SEC fined Kinross Gold Corporation $950,000 for its failure to implement and maintain adequate accounting controls at two subsidiaries in Ghana and the Islamic Republic of Mauritania. Kinross neither admitted nor denied the allegations. According to the SEC, Kinross acquired the subsidiaries in 2010 understanding that they lacked anti-corruption compliance programs. After three years of internal audits raising red flags, Kinross did implement adequate controls, however it did not maintain them. The SEC found that Kinross then awarded a contract to a sub-standard company preferred by Mauritanian officials, despite Kinross’s internal bidding and tendering procedures. Kinross also failed to conduct required due diligence when it awarded a politically connected consultant a contract to facilitate government contracts.