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 . 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)
