Case Study: Corporate Investigation for Mining Interests

31 July, 2018

Corporate due diligence – an investigation of a company or companies typically done before entering into a business agreement – is a sensible undertaking before any contracts are signed.

Due diligence is the best way to get a full overview of an organisation you're planning to work with or partner with. It can show the strengths, weaknesses and risks associated with a company or a deal, giving you the information you need to make better informed decisions.

If you're planning to work with an overseas company, conducting your own due diligence can be more challenging. Hiring professional investigative services can help you get the full picture. To find more information on how IFW Global can help you with private investigative services download our free ebook

What information can a private investigator find?

Private investigators can be useful when you’re looking for more details about a company or information that could be used in a court case.

For example, an experienced investigator will know how to quickly get details about a business, its structure, shareholders and its finances that someone from outside the field might struggle to obtain.

All of this needs to be done legally. Activities you might have seen in films – like hacking computers or phones – are illegal and will not be offered by a reputable detective agency. This type of information also cannot be used in a court.

Due diligence investigations can also look deeper into the things a company doesn't want to be known. From fraud investigation to surveillance specialists, there are many ways to legally uncover that extra information.

Corporate investigations case study: Mining interests in Indonesia

An undisclosed “mining company” was looking to work with three overseas companies based in Indonesia. They had entered into negotiations whereby the mining company would pre-pay the Indonesian firms in exchange for a future supply of coal from two connected mining companies.

Before signing a contract, the mining company wanted to hire a professional to carry out a due diligence investigation of the three Indonesian companies.

IFW Global overseas investigation

Law firm HFW Hong Kong, working on behalf of the mining company, contacted IFW Global to investigate the three Indonesian firms they were negotiating with.

IFW's investigations started by using industry resources and local contacts to legally obtain information about the three overseas companies, such as contact details for people involved in the mining businesses, data about mining licenses and key shareholder information.

From there, IFW looked into potential fraud issues and possible connections with criminal groups. It was discovered that shareholdings had been transferred to fraudsters and that certain individuals in these companies had been involved in corruption and illicit dealings in Indonesia.

The outcome

Based on the profiling and investigations carried out by IFW Global, the undisclosed company found good reason to be wary of the business agreement. As a result of the links to criminal activity and fraud, they decided not to go through with the transaction.

IFW Global works with major law firms and other companies across Australia and the rest of the world. Our team carries out a range of services such as corporate investigations, due diligence, fraud investigation and corporate security services.

To read more about our work, download our free ebook 'Corporate Risk Due Diligence: Behind the Scenes of Three Typical Cases.'
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References
https://www.business.qld.gov.au/starting-business/buying-business/buying-business-guide/due-diligence
https://www.trustify.info/blog/5-things-private-investigators-can-and-cant-do
http://www.investigatorconfidential.com/15-private-investigators.htm
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