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Addressing Corruption
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Addressing Corruption

Fraud Tracking Procedures

Although very few fraud-related incidents were reported or detected during the past five years, the Legal department has developed a formal process for reporting and tracking alleged violations. Each year it reports on the number of complaints and their nature. This report goes to the audit committee for review.

Risk Analysis

In 2005, PotashCorp hired a consultant to perform a Fraud Vulnerability Assessment. This was a high-level review to identify potential fraud vulnerabilities and make recommendations to mitigate the risk and impact of any identified threats or vulnerabilities. The assessment determined that the risk of a fraud-related event occurring at PotashCorp is low.

Incidents of Legal Violations

No PotashCorp employees were dismissed or disciplined for corruption in 2006.

There were no instances in 2006 where contracts with business partners were not renewed due to violations related to corruption.

There were no concluded legal cases regarding corrupt practices brought against the company or its employees in 2006.

No significant fines or non-monetary sanctions were levied against PotashCorp in 2006 related to accounting fraud or corruption.

Anti-Competitive Behavior

In 2006, there were no legal cases pending or completed regarding anti-competitive behavior or violations of antitrust and monopoly legislation in which PotashCorp was identified as a participant.

Participation in Public Policy Development

Political lobbying takes place primarily through public affairs activities, activities of fertilizer associations in the United States and Canada, and registered lobbyists in North Carolina and Florida. The PotashCorp Political Action Committee (PAC) was created in 2003, and is funded solely by US employees to make specific political contributions at federal, state and local levels. In Trinidad, senior management participates in the Port Authority of Trinidad and Tobago, the Regulated Industries Commission and the Board of Governors of the University of Trinidad and Tobago.

Political Contributions

In 2006, the PotashCorp PAC made contributions in the United States totaling $24,500. Of this, $19,500 went directly to political candidates and $5,000 was transferred to The Fertilizer Institute's PAC, which made the political contributions.

The company does not make in-kind contributions to political parties.