23 October 2015

In this letter, we follow up on previous correspondence with Export Development Canada (EDC) to seek clarity on how this public agency prevents corrupt practices and what steps it takes when clients are investigated for corruption, specifically in relation to Petrobras and a subsidiary of Brookfield Asset Management.

We further inquire about the agency’s due diligence process relating to Kinross Gold, following revelations that this EDC client is also being investigated by U.S. authorities regarding allegations of corruption.

Signi Schneider
Vice-President
Corporate Social Responsibility
Export Development Canada
150 Slater St.
Ottawa, ON K1A 1K3

Sent via electronic mail

October 22, 2015

Dear Signi

Thank you for your reply to my letter of May 11. I have several follow up questions.

In your letter you state:

If a transaction financed by EDC were subject to investigation by legal authorities in any jurisdiction, we would undertake an inquiry to better understand the scope of the investigation and its purpose. Typically, enforcement authorities do not disclose detailed information to third parties, such as EDC, so we would rely on public sources of information and the company to update us.

1. Has EDC requested information from Petrobras and Brookfield Asset Management Inc. regarding whether transactions financed by EDC are subject to investigation by legal authorities?

2. If so, what information was provided by Petrobras and Brookfield?

3. If not, will EDC make these requests?

4. Since writing to you in May, EDC client Kinross has reported that it is under investigation by both the U.S. Securities and Exchange Commission and the U.S. Department of Justice regarding allegations of bribery in Africa. Has EDC requested information from Kinross regarding whether transactions financed by EDC are subject to investigation by legal authorities?

5. If so, what information was provided by Kinross?

6. If not, will EDC make this request?

In your letter you state:

Any company eligible for a loan or insurance must provide representations, warranties and declarations through various financing documents stating that bribery and corruption are not involved in the business EDC is supporting. We also conduct our own review of public sources to determine if the company has any past allegations, investigations, charges or convictions in this area, whether or not related to the business EDC is supporting. Existence of such information would trigger a review by EDC, including an evaluation of, among other things, their anti-corruption policies, procedures and practices.

7. Was EDC aware of allegations or investigations regarding Petrobras, Brookfield and Kinross when it approved financing for these clients?

8. Has EDC conducted reviews of Petrobras, Brookfield and Kinross including an evaluation of, among other things, their anti-corruption policies, procedures and practices?

9. If so, what were EDC’s findings?

In your letter you state:

If an EDC customer to which EDC has provided a loan or insurance coverage later faces allegations, investigations, charges or convictions, EDC undertakes its own inquiry to assess the risk that this conduct was involved in the business EDC is supporting. This would encompass a review of the company’s contractual obligations to EDC, including investigating whether there has been a breach of the company’s representations, warranties and undertakings in the financing and insurance documentation.

10. Petrobras, Brookfield and Kinross all face allegations and investigations of corruption. Has EDC undertaken inquiries to assess the risk that the conduct under investigation for each of these companies was involved in the business EDC is supporting?

11. If so, what were the results of EDC’s inquiries?

12. If not, will EDC conduct such inquiries?

Thank you.

Yours truly,

Karyn Keenan

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In response, EDC sent this final reply by email.

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