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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 »

General Electric

Oil-For-Food Program Illegal Payments

Date: 07/27/2010 (Date of Settlement Announcement)

Misconduct Type: Ethics

Enforcement Agency: SEC

Contracting Party: International

Court Type: Civil

Amount: $23,478,614

Disposition: Settlement

Synopsis: General Electric agreed to pay $23.5 million to settle a U.S. Securities and Exchange Commission (SEC) complaint that GE bribed Iraqi government officials to win contracts to supply medical and water purification equipment under the U.N. Oil-for-Food program. The SEC alleged that, between 2000 and 2003, two GE subsidiaries and two companies GE later acquired paid $3.6 million in kickbacks in the form of cash, computer equipment, medical supplies and services to the Iraqi health and oil ministries, in violation of the Foreign Corrupt Practices Act (FCPA). GE, which neither admitted nor denied the SEC’s allegations and cooperated with the investigation, paid $18,397,949 in disgorgement of profits, $4,080,665 in prejudgment interest, and a $1 million penalty.