Source: Australian Federal Police

The AFP has finalised a foreign bribery investigation into SMEC International Pty Ltd (SMEC), after SMEC and the AFP agreed to a settlement payment totalling $9 million (pecuniary penalty) under the provisions of the Proceeds of Crime Act 2002 (Cth) (POCA).  

The settlement does not involve any admission of liability by SMEC.  

The AFP investigation, which is part of Operation Amorce, examined conduct involving SMEC across several jurisdictions, including Sri Lanka and Vietnam.  

The AFP initially commenced Operation Amorce in 2013 and executed search warrants in 2015 and 2018.  

Following careful consideration of all matters and relevant public interest factors, AFP investigators determined it would not refer SMEC to the Commonwealth Director of Public Prosecutions (CDPP).

This decision is consistent with the principles outlined in the AFP’s recently published guideline Optimal investigation outcomes for self-reporting and cooperating corporations (PDF, 340KB) which is not applicable to individuals.  

In reaching its decision, the AFP had regard to significant public interest factors, including:  

• subsequent to execution of search warrants in 2015 and 2018, and to internal investigation reports commissioned by SMEC, SMEC self-reported further conduct by individuals that was ultimately investigated by the AFP;  
• SMEC cooperated with the AFP and voluntarily produced large volumes of evidential material;  
• SMEC provided the AFP with detailed internal investigation reports and waived legal professional privilege over certain materials pertinent to the investigation;  
• key individuals alleged to have been involved in the conduct are no longer with the company;  
• SMEC has enhanced its antibribery and compliance procedures since the alleged conduct and has confirmed that it continues to regularly review and update those procedures as required; and  
• the age of the alleged conduct and the length of time that has elapsed since the investigation commenced.  

The AFP-led Criminal Assets Confiscation Taskforce (CACT) engaged in consideration of civil recovery under the POCA, resulting in a settlement agreement in respect of alleged benefits which may have been derived from the conduct investigated.  

In addition to a pecuniary penalty, SMEC also agreed to:

• make a contribution to the AFP’s external legal costs associated with the investigation; and
• make a voluntary contribution to an anticorruption non-governmental organisation.  

Read the full media release here.