ICMI Suspends Auditor for Six Months and Sanctions Company for Failure to Adhere to Auditor Rotation Rule

The International Cyanide Management Institute (ICMI) today announced that it has suspended an auditor for six months and sanctioned a signatory company for not adhering to ICMI’s auditor rotation requirement.

The Cyanide Code program currently limits at two the number of consecutive audits an auditor may perform for a particular operation. For each audit submitted to ICMI, auditors submit a credentials form that specifically directs their attention to the prohibition on performing more than two consecutive audits. In submitting the audit reports for a recertification audit, the auditor falsely certified that he had not performed more than two consecutive audits of this operation.

Compliance with the program’s requirements is the responsibility of our signatories. Annually, ICMI reminds these companies of this responsibility. The company should not have engaged the auditor for the recertification audit, but the auditor also had a responsibility to decline the engagement.

Concórdia Transportes Rodoviários S.A. (Concórdia), a transporter of cyanide in Brazil, has been a signatory to the Cyanide Code since 2009. The company’s transport operation has been audited for compliance with the Cyanide Code, and each time was determined to be in full compliance with the program. ICMI reviews each audit report for completeness prior to announcing a certification. ICMI announced the most recent certification of Concordia’s operation on February 17, 2016, only to discover afterward that the same auditor performed all three audits.

ICMI has shortened the duration of Concórdia’s current certification from three years to two years, and has suspended the auditor from conducting Cyanide Code certification audits for six months.

ICMI has announced over 500 certifications since the program’s inception. ICMI staff has revisited all previous certifications and confirmed that there were no other instances where an auditor performed more than two consecutive audits of the same operation. ICMI also has strengthened its review procedure to prevent a reoccurrence of such an incident.

Friday, March 18, 2016