Company's Bribes to Brazil, Iraq Officials Lead to FCPA Violations
Technip FMC (TFMC) and its subsidiary Technip USA, reached a $296 million settlement with the Justice Department after being charged with violating the Foreign Corrupt Practices Act, according to a June 25 press release.
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Between 2003 and 2013, TFMC, an oil and gas company, conspired with several companies, including Singapore-based Keppel Offshore & Marine Ltd., to make about $70 million in “corrupt payments” to a consultant “and others,” the press release said. The consultant allegedly passed the payments as bribes to Brazilian government officials. The officials worked at Petrobras, the Brazilian state-owned oil company, and gave TFMC “business advantages” in exchange for bribes, the Justice Department said. TFMC also allegedly paid more than $6 million in bribes to the Workers’ Party in Brazil.
TFMC also paid bribes to at least seven Iraqi government officials between 2008 and 2013 in exchange for business contacts, the Justice Department said. The officials worked for Iraq’s Ministry of Oil, South Oil Company and Missan Oil Company. TFMC paid the bribes through a Monaco-based intermediary, the press release said.
The Justice Department said TFMC took steps to mitigate the settlement penalty, including firing or disciplining employees who were involved in the violations. The company also introduced more compliance training, increased its internal controls and cooperated with the investigation.
TFMC also reached settlements with the Brazilian government for bribes the company paid in the country, the press release said. The Justice Department said it is crediting the company’s U.S. settlement with the $214 million TFMC owes to Brazil. In related settlements, the Justice Department said Keppel Offshore & Marine Ltd. and its U.S. subsidiary, Keppel Offshore & Marine USA, paid a combined $422 million fine for its violations in the case. A senior member of the company’s legal department also pleaded guilty to corruption charges, the press release said.