The UK’s Serious Fraud Office has taken the unusual step of issuing an arrest warrant for the boss of a Kazakhstan-based mining company.
The SFO said that Benedikt Sobotka, chief executive of Eurasian Resources Group (ERG), failed to turn up for questioning in London last month, prompting it to take the “rare but necessary” action of issuing a warrant.
ERG is the successor company to ENRC, the miner that was listed on the London Stock Exchange between 2007 and 2013, before returning to private hands following a string of corruption allegations and boardroom battles over “Soviet”-style corporate governance.
So, let us say that Kazakh mining is corrupt. Just as a postulate you understand. Those who successfully invest there should make good profits then, yes? As good profits would only be normal profits, risk adjusted.
As compared to the normal story that making good mining profits in a corrupt place is evidence of ripping the government off.
Now replace Kazakh with DRC or Tanzanian. For that second argument is being made there, isn’t it?