Washington - The US and British subsidiaries of ABB Ltd, a Swiss equipment-maker, pleaded guilty to paying more than US$1m in illegal bribes to win oil contracts in Nigeria, the Justice Department said on Tuesday.
ABB Vetco Gray of Houston and ABB Vetco Gray UK of Aberdeen, Scotland, disclosed the suspicious payments to the government last year and formally pleaded guilty in a federal court in Houston. As part of the deal, each company agreed to pay a fine of $5.25m.
The companies expected to reap profits of nearly $12m in Nigeria, the government said. They were accused of paying bribes in exchange for confidential bid information and favourable recommendations from Nigerian government agencies overseeing seven oil and gas construction contracts.
Each company was charged under the Foreign Corrupt Practices Act; the UK firm was charged under a section of the law added in 1998 that prohibits foreign companies from any act involving the bribe of a foreign official in the United States.
In a related civil case by the Securities and Exchange Commission, ABB agreed in a settlement to pay $5.9m more in restitution and interest. The parent company also agreed to pay a $10.5m civil penalty, which was considered to be covered by the two subsidiaries' payments of fines of the same amount in the criminal proceeding, the SEC said.
ABB also promised under the settlement to hire an independent consultant to review its procedures for complying with the anti-bribery law.
ABB companies employ 113 000 people.
