The Client: A pharmaceuticals company listed on the London and New York Stock Exchanges.
Their Problem: As part of its global integrity due diligence programme, the client wished to establish the bona fides and commercial standing of a potential distributor of its products in South Sudan, recently declared independent from Sudan. In particular, the client required an understanding of the target’s political exposure in South Sudan and the wider region.
Our Actions: Through debriefs of primary human intelligence sources in Juba, Africa Integrity established that the target enjoyed a strong reputation and commercial capability in South Sudan. But enquiries led us to debrief additional sources in Khartoum, revealing that the target was part-owned by a Sudanese national subject to UN and US sanctions. This beneficial interest had not been declared to our client.
The Outcome: Following legal advice prompted by Africa Integrity’s findings, the client decided not to appoint the prospective distributor, thereby avoiding potential non-compliance with international sanctions – for which the financial penalties would have far outstripped the cost of Africa Integrity’s investigation.
“The business unit was extremely grateful for your help. We dodged a bullet there”
Head of Compliance
The Client: A financial services client with extensive investments in emerging markets.
Their Problem: The client was considering a commercial opportunity to provide a line of credit to a central bank in Africa, underwritten by future anticipated sales of mineral resources on the international markets. Before signing a commercial agreement, the client wished to establish whether proposed collateral for the line of credit had already been committed to other lenders.
Our Actions: Africa Integrity accessed existing sources in the relevant central bank and, without revealing the client’s involvement, established broad policy approaches to use of mineral resources as collateral for loans from a range of international lenders. These initial enquiries developed sufficient trust between Africa Integrity’s investigators and their sources to permit more targeted questioning.
The Outcome: We were able to satisfy the client that the institution had been negotiating in good faith. It was established that there had been incidents where the same collateral was promised to multiple lenders but that this was not so in the case under investigation. This reassured the client that its credit would be adequately secured.
“The intelligence they provided gave us the confidence to proceed. Africa Integrity’s combination of excellent local insights, understanding of customer needs and high-quality finished product at a reasonable price mark them out in a crowded sector”
Head of Corporate Risk
The Client: A renewable energy investor with exposure to several African countries.
Their Problem: The client had grown its portfolio in Africa rapidly, partnering with numerous local companies across the continent. In addition to pre-transaction due diligence checks, the client wished to conduct ongoing operational reviews to establish that the processes and management of their local partners were compliant with UK anti-bribery and corruption (ABAC) laws and best practice.
Our Actions: Africa Integrity developed a bespoke review process, tailored to the profiles and operations of the client’s local partners in Africa. We deployed experienced investigators to a number of different countries, to work with partner companies there. Site visits and interviews with management, staff, and interested third parties enabled us to build a reliable picture of ABAC policies, processes and practices.
The Outcome: Africa Integrity’s investigations satisfied the client that, generally, ABAC systems were rigorous and appropriate to prevailing risk environments. However, in isolated cases, we identified specific shortcomings in policies and processes, caused by inadequate understanding of UK law. These were subsequently addressed by the client to bring processes in line with international standards.
“Africa Integrity delivered their work exactly to deadline and budget. Their intricate research and detailed advice resulted in a material change in our investment decision, and changed our strategy. A great outcome”