KBR and Halliburton got hit with fines related to activities abroad. The Securities and Exchange Commission has a press release here on the settlement of the matters.
KBR and Halliburton have agreed to pay $177 million in disgorgement to settle the SEC’s charges. Kellogg Brown & Root LLC has agreed to pay a $402 million fine to settle parallel criminal charges brought today by the U.S. Department of Justice. The sanctions represent the largest combined settlement ever paid by U.S. companies since the FCPA’s inception.
KBR settled its Foreign Corrupt Practices Act (FCPA) case, as well, according to this DOJ Press Release.
KBR admitted that, at crucial junctures before the award of the EPC contracts, KBR’s former CEO, Albert “Jack” Stanley, and others met with three successive former holders of a top-level office in the executive branch of the Nigerian government to ask the office holder to designate a representative with whom the joint venture should negotiate bribes to Nigerian government officials. Stanley and others negotiated bribe amounts with the office holders’ representatives and agreed to hire the two agents to pay the bribes. According to court documents, the joint venture paid approximately $132 million to the first agent, a consulting company incorporated in Gibraltar, and more than $50 million to the second agent, a global trading company headquartered in Tokyo, Japan, during the course of the bribery scheme. KBR admitted that it had intended for these agents’ fees to be used, in part, for bribes to Nigerian government officials.