Halliburton to pay $ 559 mm to settle Nigerian bribery probe

Halliburton will pay a $ 559 mm fine to end an investigation of its former KBR unit if the US government approves the settlement, the largest penalty against a US company for charges of bribery under federal law.
Halliburton, once headed by former Vice President Dick Cheney, said it was awaiting final approval from the US Department of Justice and the Securities and Exchange Commission to settle claims that KBR violated anti-bribery laws by paying kickbacks to Nigerian officials. Under the settlement, Halliburton would pay $ 382 mm to the Department of Justice and $ 177 mm to the Securities and Exchange Commission in "disgorgement."

Halliburton said in regulatory filings last July that it was in settlement talks with the government. Dan Newcomb, a partner at law firm Shearman and Sterling in New York who specializes in Foreign Corrupt Practices Act (FCPA) law, said it was likely more companies involved in anti-corruption cases would settle with the US government. Under the FCPA, it is illegal for US companies or their agents to use bribes to win foreign business.
Other oilfield service companies including Schlumberger and Transocean are being scrutinized by US officials for possible FCPA violations. Both companies said they were cooperating with the US government.

In April 2007, oilfield services company Baker Hughes reached a $ 44.1 mm settlement with US officials related to a bribery probe of its operations in Nigeria, Angola and Kazakhstan. In December, German engineering conglomerate Siemens paid $ 800 mm to US officials to settle claims that it violated the FCPA.
The US government's probe of Halliburton related to construction and expansion of a gas liquefaction facility at Bonny Island in Rivers State, Nigeria, and other projects dating back as much as 20 years, Halliburton has said in regulatory filings. In July, Halliburton said it had "reason to believe" payments may have been made to Nigerian officials by agents of its TSKJ consortium, which built the Bonny Island Facility. The TSKJ consortium includes France's Technip, Italy's Snamprogetti and Japan's JGC.

As part of the settlement, Halliburton said it would not be required to have a monitor, but the company would have to retain an independent consultant to assess its compliance with anti-bribery laws.
Albert "Jack" Stanley, a former KBR chief executive officer, pleaded guilty in September to charges stemming from a scheme to pay $ 180 mm in bribes to Nigerian government officials for work on the Bonny Island LNG plant. Stanley, who had worked under Dick Cheney when he headed Halliburton, agreed to cooperate with US investigators probing Halliburton's potential violations of the FCPA.

Earlier, the company, headquartered in Dubai and Houston, reported a better-than-expected fourth-quarter profit.