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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…

Oil For Food Program Kickbacks

Chevron agreed to pay $30 million to settle charges that it paid kickbacks to Iraq in connection with crude oil purchased in 2001 and 2002 under the United Nation’s Oil-For-Food program. According to the Securities and Exchange Commission, intermediaries under contract with Chevron made approximately $20 million in illegal payments that bypassed the Oil-For-Food escrow account and were paid directly to Iraqi-controlled bank accounts in Jordan and Lebanon, in violation of the Foreign Corrupt Practices Act. Under the agreement, Chevron, which did not admit or deny the SEC’s allegations, will remit $25 million in profits, pay a $3 million civil penalty, and pay $2 million to the Department of Treasury’s Office of Foreign Asset Controls. (Chevron satisfied its disgorgement obligation by forfeiting $25 million pursuant to a non-prosecution agreement with the U.S. Attorney’s Office for the Southern District of New York.) The Oil-For-Food program, which ran from 1996 to 2003, was established to help Iraqis cope with sanctions the U.N. imposed after Saddam Hussein invaded Kuwait in 1990. Under the program, money from Iraqi oil sales was to have been used by the government to purchase humanitarian goods such as food and medicine. However, there were accusations of widespread corruption and abuse, with hundreds of foreign companies accused of colluding with Hussein’s regime to bilk the program of billions of dollars.

Misconduct Type
Ethics
Enforcement Agency
SEC
Contracting Party
International
Court Type
Civil
Disposition
Settlement
Date of Settlement
11/14/2007
Contractors Involved Penalty
Total
ChevronTexaco Corporation $30,000,000
Further Information Released
Non-Prosecution Agreement 5/30/2008
Complaint 11/15/2007
SEC Litigation Release 11/15/2007
SEC Press Release 11/15/2007

See also:

Federal Contractor Misconduct Database