KBR Business Report: Case Study

KBR Business Report: Case Study



KBR Business Report: Case Study

1. Could the alleged payment of bribes to Nigerian government ……………….Practices Act?

Answer one:

On July 2, 2007, the Department of Justice (DOJ) took an extraordinary course of action and sent notes to almost dozen oil and oil services businesses considering promise violations of the FCPA. Expressly, DOJ is concerned with promise illicit payments to Nigerian culture agencies made through Paneling World Transport Holding Ltd., a Swiss boats and logistics administration company. The Securities and Exchange charge (SEC) is conducting an associated municipal investigation as well. The note asks companies to list the countries in which they worked with Paneling in the past five years, and to reveal what they paid for Aniline's services. The note furthermore inquired each firm to rendezvous separately with DOJ in Washington, D.C. farther, in July; DOJ held a gathering with oil and oil services companies to talk about the penalties of doing enterprise in Nigeria. This specific DOJ investigation is not surprising in lightweight weight of the many actions of corruption that have lately taken location in Nigeria. US firms carrying out business in Nigeria should be especially worried with the Foreign Corrupt Practices proceed (FCPA). Nigeria has long been known for its corrupt practices. Even those enterprises who sustain strict interior controls and work hard to obey with US ant bribery regulations have difficulty with FCPA-compliance in this district. Corruption is so prevalent in Nigeria that it is nearly impossible to perform enterprise in the country without being inquired to pay a bribe. This puts businesses reluctant to pay the bribes at a critical competitive handicap. In the past few years, a large percentage of FCPA enforcement activities have engaged Tran activities in Nigeria: • On July 23, 2007, a federal impressive jury in Houston indicted Jason Edward Step, a previous executive of Wilber's International Inc., on allegations of conspiring to make corrupt payments to Nigerian officials in violation of the FCPA. Step has been ascribed with conspiring to make over $6 million in illegal payments to Nigerian agents in alignment to obtain and keep gas pipeline construction enterprise from a junction venture majority-owned and controlled by The Nigerian nationwide Petroleum Company (NNPC), the state-owned oil business in Nigeria.On February 6, 2007, Veto Gray Controls Inc., Veto Gray Controls Ltd., and Veto Gray UK Ltd., wholly belongs to subsidiaries of Veto worldwide Ltd., pled guilty to violating the anti-bribery provisions of the FCPA. In supplement, Able Group Ltd., another wholly owned subsidiary of Veto worldwide, entered into a deferred prosecution affirmation with DOJ regarding the identical conduct. From 2002-2005, the businesses supposedly made 378 corrupt payments totaling approximately $2.1 million to Nigerian culture officials in an attempt to obtain preferential remedy throughout the customs method. The settlement needed Veto Gray to pay astronomical fines because it was not the company's first violation of the FCPA with respect to its operations in Nigeria. On July 6, 2004, SEC settled enforcement activity against ABB Veto ...