Menu

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…

Oil For Food Program Kickbacks – Criminal Investigation

Textron settled charges that employees of its French subsidiaries paid kickbacks to Saddam Hussein’s government during the United Nations’ Oil-For-Food program. The employees were alleged to have paid roughly $600,000 in kickbacks by inflating the price of contracts to provide industrial pumps, gears, and other equipment by 10 percent before submitting them for U.N. approval and concealing from the U.N. the fact that the price contained the cost of the illicit payments. In exchange for not filing criminal charges, the Department of Justice will require Textron to cooperate with investigators and pay a $1.15 million fine. The Oil-For-Food program, which ran from 1996 to 2003, was established to help Iraqis cope with U.N. sanctions imposed after Hussein’s invasion of Kuwait in 1990. Under the program, money from Iraqi oil sales was to have been used for humanitarian goods such as food and medicine. However, there were accusations of widespread corruption and abuse, with hundreds of foreign companies alleged to have colluded with Hussein’s regime to bilk the program of billions of dollars. See related Textron misconduct instance, “Oil For Food Program Kickbacks – SEC Investigation.”

Misconduct Type
Ethics
Enforcement Agency
Justice
Contracting Party
International
Court Type
Criminal
Disposition
Non-Prosecution Agreement
Date of Announcement
8/23/2007
Contractors Involved Penalty
Total
Textron, Inc. $1,150,000
Further Information Released
Non-Prosecution Agreement 5/30/2008
DOJ Press Release 8/25/2007
Textron Press Release 8/25/2007

See also:

Federal Contractor Misconduct Database