The Americas

Research has established that the target company had been involved in tax evasion and ESG violations including labour law violations which have led to a wave of protests and strikes of its employees, demanding better salaries and working conditions. In addition, the company had been sanctioned by the local regulatory authorities in connection with a series of other irregularities, which resulted in restrictions to participate in tenders and to sign contracts with the public administration.

Although none of the managers or the shareholders had faced any criminal charges in the South American country, the client decided not to engage with the company because of the evidence of ESG violations.

Research has established that two of the target company’s subsidiaries had been fined by the US for violating sanctions imposed by the Office of Foreign Assets Control (OFAC) on Sudan, which was considered a terrorist financier-state until 2020. In addition, there were rumours that other affiliated companies, despite the sanctions imposed on Russia following the invasion of Ukraine, continued to have business relations with a series of sanctioned Russian companies and a formal investigation by the US authorities into these allegations was likely to be launched.

Based on these findings, the client concluded that it did not intend to enter into a business relationship with the company.