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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

KBR

Nigeria LNG Contracts Bribery (UK Prosecution)

Date: 02/16/2011 (Date of Settlement Announcement)

Misconduct Type: Ethics

Enforcement Agency: International

Contracting Party: None

Court Type: Criminal

Amount: $5,110,949

Disposition: Settlement

Synopsis: In its 2009 SEC Form 10-K, Halliburton reported that M.W. Kellogg Ltd. (MWKL), a British joint venture in which KBR owns 55 percent interest, is seeking plea negotiations with the UK’s Serious Fraud Office (SFO) to settle its investigation into a Nigerian bribe scheme in which KBR and Halliburton pleaded guilty in 2009 to U.S. charges that, as part of a multinational consortium, they paid bribes to Nigerian officials from 1994 to 2004 to win contracts to build the Bonny Island liquefied natural gas (LNG) facility. Halliburton, which agreed to indemnify KBR and its subsidiaries for some past liabilities when the two companies split in 2007, reported that it will indemnify MWKL for 55 percent of any penalties. In February 2011, MWKL reached a £7,028,077 (approx. US$11.3 million) settlement with the SFO.