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British firm fined for corruption British firm fined for corruption
(32 minutes later)
A British construction firm has been ordered to pay £5m after it pleaded guilty to involvement in overseas corruption and breaching UN sanctions.A British construction firm has been ordered to pay £5m after it pleaded guilty to involvement in overseas corruption and breaching UN sanctions.
Mabey & Johnson tried to influence officials in Jamaica and Ghana when bidding for public contracts.Mabey & Johnson tried to influence officials in Jamaica and Ghana when bidding for public contracts.
It also paid money to Saddam Hussein's Iraq regime, violating the terms of the UN oil for food programme. It also paid money to Saddam Hussein's Iraq regime, violating the terms of the UN oil-for-food programme.
Reading-based bridge builders Mabey & Johnson confessed its wrongdoing to the Serious Fraud Office. Reading-based bridge builder Mabey & Johnson confessed its wrongdoing to the Serious Fraud Office.
The firm secured contracts worth £60 million by bribing foreign politicians and other officials.The firm secured contracts worth £60 million by bribing foreign politicians and other officials.
A judge at Southwark Crown Court fined the firm £3.5m. It was also ordered to pay a £1.1m confiscation order and £350,000 in prosecution costs.A judge at Southwark Crown Court fined the firm £3.5m. It was also ordered to pay a £1.1m confiscation order and £350,000 in prosecution costs.
In addition the company has made £1,413,611 available as reparations to Ghana, Jamaica and Iraq.In addition the company has made £1,413,611 available as reparations to Ghana, Jamaica and Iraq.
'Severely detrimental''Severely detrimental'
Following extensive discussions with the Serious Fraud Office, it pleaded guilty to two charges of conspiracy to corrupt and one charge of breaching UN sanctions on Iraq. Following extensive discussions with the Serious Fraud Office (SFO), it pleaded guilty to two charges of conspiracy to corrupt and one charge of breaching UN sanctions on Iraq.
Part of the case against the firm concerned Mabey & Johnson's involvement in the UN oil for food programme in Iraq. Part of the case against the firm concerned Mabey & Johnson's involvement in the UN oil-for-food programme in Iraq, which was established to limit the humanitarian impact of the international sanctions on the country.
Illegal payments to that state, combined with those from other companies "all over the world could be used for purposes severely detrimental to the proclaimed interests of the UK and, indeed, the UN", said Judge Geoffrey Rivlin QC. Illegal payments to the state, combined with those from other companies "all over the world could be used for purposes severely detrimental to the proclaimed interests of the UK and, indeed, the UN", said Judge Geoffrey Rivlin QC.
London's Southwark Crown Court heard that altogether the firm had parted with pay-outs totalling £1m.London's Southwark Crown Court heard that altogether the firm had parted with pay-outs totalling £1m.
During the investigation, it emerged Mabey & Johnson first started paying backhanders in Jamaica in 1993.
As the years passed, its "culture" of bribery spread to Ghana and other countries including Madagascar, Angola, Mozambique and Bangladesh.
John Hardy QC, one of the SFO prosecutors, said following the company's decision to "refer itself" to the SFO, a number of directors had left and a new board had been elected.
It had also agreed to an internal compliance programme by an SFO-approved independent monitor to ensure bribes remained a practice of the past, he said.