On June 26, DoJ announced settlement of foreign bribery case.
- TechnipFMC and subsidiary Technip USA agreed to pay over $296mn in FCPA fine.
- Company is a global provider of oil and gas services, and product of 2017 merger
between two predecessor companies, Technip S.A. and FMC Technologies (FMC).
- Charged 2 separate bribery schemes: Technip Brazil bribes, and FMC Iraq bribes.
- Follows 2010 $240mn FCPA penalty paid by Technip, re Nigeria bribery
- From about 2003-13, Technip conspired with Keppel Offshore & Marine (KOM) of Singapore, and their prior consultant, to give him $69mn commission payments.
- Consultant passed along part of $69mn, as bribes to Brazil government officials.
- Brazilian officials were employees with Brazil state-owned oil company, Petrobras.
- Bribes paid to secure improper advantage and business with Petrobas for Technip.
- Made more than $6mn in corrupt payment to the workers’ party officials in Brazil.
- Consultant pleaded guilty to conspiracy to violate the FCPA, awaiting sentencing.
$214mn Penalty to Brazil
- In related case, company settled with Brazil authorities for $214mn for bribery.
- US will credit amount TechnipFCM pays to Brazil authorities, agreed to $214mn.
- From 2008-2013, FMC paid bribe to at least seven government officials in Iraq.
- Officials from Iraq ministry of oil, South Oil Company, and Missan Oil Company.
- Payments made via Monaco-based intermediary company to win over business.
- TechnicFMC entered deferred prosecution agreement requiring rigorous internal
controls, and to cooperate with DoJ investigation, to avoid criminal prosecution.
- TechnipFMC given credit for extensive remedial measures, cooperating with DoJ.
- Disciplinary action on former and current employees in relation to its misconduct.
- Change Brazil operations, so no longer engages in practices leading misconduct.
- Required employees and third parties, to undergo additional compliance training.
- Made specific enhancement to company internal control and compliance program.
Related Enforcement Action
- In 2017, KOM and US subsidiary agreed pay $422mn to authorities in US, Brazil,
Singapore on a related scheme, a senior legal officer pleading guilty.