DOJ charges 2 subsidiaries of Swiss company in deals with oil-for-food program, Mexico utilityBy AP
Wednesday, September 29, 2010
US charges 2 subsidiaries of Swiss company
WASHINGTON — Swiss company ABB Ltd. on Wednesday resolved charges that two subsidiaries engaged in conspiracies to violate an anti-bribery law in deals with a state-owned utility in Mexico and with the Iraqi government under Saddam Hussein, the Justice Department announced.
ABB Inc. admitted that a business unit in Sugar Land, Texas, paid $1.9 million in bribes to officials in the Mexican state-owned utility company CFE in exchange for contracts worth more than $81 million.
In federal court in Houston, Judge Lynn Hughes imposed a sentence that included a criminal fine of $17.1 million on the American subsidiary.
ABB Ltd.Jordan was charged with one count of conspiracy for allegedly paying more than $300,000 in kickbacks to the former Iraqi government to secure orders for electrical equipment and services worth more than $5.9 million.
In a related matter, ABB Ltd. reached a settlement with the Securities and Exchange Commission, agreeing to pay more than $39 million in disgorgement, prejudgment interest and civil penalties.
ABB Ltd. entered into a deferred prosecution agreement to cooperate with investigations by U.S. and foreign authorities of the company’s corrupt payments and to adhere to recommendations of an independent compliance consultant under a three-year agreement.
Tags: Bribery, Central America, Contracts And Orders, Corporate Crime, Europe, Graft And Conflicts Of Interest, Iraq, Latin America And Caribbean, Mexico, Middle East, North America, Switzerland, United States, Washington, Western Europe