German-based
international engineering company, Bilfinger SE and its subsidiary, Julius
Berger Nigeria, have been issued a N5.1billion ($31.9m) fine on Tuesday by the
United States Justice Department and the Federal Bureau of Investigation for
violating the Foreign Corrupt Practices Act’s anti-corruption provisions.
The construction
company was accused of bribing government officials to obtain and retain
contracts related to a joint venture with Willbros Group in a pipeline project it
did for the Eastern Gas Gathering System (EGGS) in 2003. The project was valued
at $387m.
According to the
complaint filed in the US Court, from late 2003 through 2005, Julius Berger had
conspired with Willbros Group Inc., and others to make payments totaling $6m to
unnamed Nigerian government officials to obtain EGGS contracts.
Sahara reporters
reported that Julius Berger and Willbros formed a joint venture and inflated
its bid by three per cent to cover the cost of the bribe. Part of the
conspiracy involved Julius Berger’s employees bribing Nigerian officials with
cash sent from Germany.
The firm has however
agreed to pay the fine issued on a three-count criminal charge filed in the US
District Court for the Southern District of Texas under the Foreign Corrupt
Practices Act violation.
The department agreed
to drop criminal proceedings against Bilfinger after three years on condition
that Bilfinger further implement rigorous internal controls continue
cooperating fully with the department, and retain an independent corporate
compliance monitor for at least 18 months.
Speaking on the
issue, Bilfinger Chief Executive Roland Koch said: "We are pleased that we
have now been able to put these events from the distant past behind us."
Bilfinger had reduced
its investment in Nigeria last year by cutting its stake in Julius Berger
Nigeria PLC from 49 percent to 33percent.It has also sold 90 percent of its shares
in Julius Berger International GmbH to Julius Berger Nigeria.
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