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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Panalpina Group Foreign Bribery: DOJ Investigation

Swiss shipping and logistics company Panalpina Group and several of its oil and gas service company customers, including Royal Dutch Shell, agreed to pay over $156 million in penalties to settle Foreign Corrupt Practices Act criminal charges filed by the U.S. Department of Justice (DOJ). Panalpina admitted that between 2002 and 2007, it paid thousands of bribes totaling at least $27 million to foreign officials in at least seven countries, including Angola, Azerbaijan, Brazil, Kazakhstan, Nigeria, Russia and Turkmenistan in order to circumvent local rules and regulations relating to the import of goods and materials. Shell’s Nigerian subsidiary, Shell Nigeria Exploration and Production Company Ltd. (SNEPCO), admitted that it approved of or condoned the payment of bribes on their behalf in Nigeria and falsely recorded the bribe payments as legitimate business expenses in their corporate records. To resolve the matter, the Department of Justice and Shell entered into a 3-year deferred prosecution agreement that required, among other things, SNEPCO to pay a $30 million criminal penalty. See related Royal Dutch Shell instance, “Panalpina Group Foreign Bribery: SEC Investigation.”

Misconduct Type
Ethics
Enforcement Agency
Justice
Contracting Party
None
Court Type
Criminal
Disposition
Deferred Prosecution Agreement
Date of Settlement Agreement
11/4/2010
Contractors Involved Penalty
Total
Royal Dutch Shell PLC $30,000,000
Further Information Released
Criminal Information 11/17/2010
Deferred Prosecution Agreement 11/17/2010
DOJ Press Release 11/17/2010

See also:

Federal Contractor Misconduct Database