How to Select Buyers of Oil, Gas and Minerals

Annex

Checklist: Questions that SOEs may consider during the buyer screening process

• What is the corruption profile and local business climate of the country in which the buyer is registered?

• Does the buyer rely on the use of agents or other intermediaries or third parties? If so, what is known of their integrity profiles?

• Do you have a clear indication of the ultimate beneficial owner(s) of the buyer?

• Is there a presence of politically-exposed persons (PEPs)? If so, why and are there any indications of conflicts of interest or misuse of position? Are you comfortable with their sources of wealth?

• What is the reputation of the buyer, including perceptions of its business conduct?

• What is the ownership structure of the buyer? For example, shell companies and companies registered in jurisdictions with strong secrecy laws may pose additional risks.

• Has the buyer been implicated in any instances of corruption (allegations, arrests, indictments) or been blacklisted by a government agency (in any jurisdiction)?

• Is the buyer listed on the debarment lists of international financial institutions?

• Has the buyer been involved in any litigation, whether civil, criminal or regulatory?

• Are any gifts or entertainment being offered?

• Are any political or charitable contributions being requested?

• What is the nature of any relationships the buyer may have with public officials?

• Have SOEs in other jurisdictions terminated their relationship with the buyer or banned the buyer from future commodity sales? If so, what were the reasons?

• Does the buyer have internal controls in place to prevent corruption in its business dealings?

• Does the buyer fully understand any relevant anti-corruption policy (set out in national legislation or SOEs anti-corruption guidelines)?

Source: Adapted from (OECD/AfDB, 2016[33]).