!! History Commons Alert, Exciting News

Context of 'January 26, 2009: Halliburton Agrees to Pay $559 Million Fine for Bribing Nigerian Officials'

This is a scalable context timeline. It contains events related to the event January 26, 2009: Halliburton Agrees to Pay $559 Million Fine for Bribing Nigerian Officials. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

The Justice Department and the Securities and Exchange Commission (SEC) launch an investigation into allegations that Monsanto representatives paid bribes to Indonesian officials in an effort to advance its business interests there. The Justice Department and SEC were reportedly informed of the suspected bribery by Monsanto itself, which says it launched its own investigation after noticing irregularities in the accounting of its Jakarta-based subsidiary. [Wall Street Journal, 5/27/2004] The investigation lasts about three years. On January 6, 2005, the Justice Department and the SEC announce that Monsanto has agreed to pay a $1 million penalty to the Justice Department, which has charged the company with violating the US Foreign Corrupt Practices Act. The company is also ordered to pay $500,000 to the US Securities and Exchange Commission (SEC). As part of the settlement, Monsanto will allow an “independent compliance expert” to audit and monitor the company and to ensure there are no further breaches of the US Foreign Corrupt Practices Act. The company says it accepts full responsibility and has taken action against those involved. “We accept full responsibility for the improper activities that occurred in connection with our Indonesian affiliates,” says Lori Fisher, one of the company’s spokespersons. “Such behavior is not condoned nor accepted at Monsanto, and the people involved are no longer employed by Monsanto.” [Associated Press, 1/6/2001; Reuters, 1/7/2001; BBC, 1/7/2005; Sunday Herald, 1/9/2005]

Entity Tags: US Department of Justice, US Securities and Exchange Commission, Monsanto

Timeline Tags: Seeds

The US Army Corps of Engineers awards Halliburton subsidiary, Kellogg, Brown & Root (KBR), a sole-source monopoly contract to repair and operate Iraq’s oil infrastructure. The contract is awarded in secrecy without any competing bids from other qualified companies. Halliburton will eventually charge the government $2.4 billion for its work. The Defense Contract Audit Agency will find that about $263 million of these costs are either questionable or unsupported. Despite this, the US Army will pay Halliburton all but $10.1 million, or 3.8 percent, of the disputed costs. [New York Times, 2/27/2006; US Congress, 3/28/2006, pp. 3-4 pdf file]

Entity Tags: Defense Contract Audit Agency, Halliburton, Inc., US Army Corps of Engineers

Timeline Tags: Iraq under US Occupation

The Pentagon’s Defense Contract Audit Agency sends a draft audit report to Halliburton subsidiary Kellogg, Brown, & Root (KBR) claiming that the firm overcharged the US military as much as $61 million for fuel deliveries into Iraq. The report says that KBR charged an average of $2.64 per gallon, more than twice the price others were paying. The DCAA also says the company has been slow to provide cost estimates for its projects in Iraq. KBR has given the US government estimates for only 12 orders. As of this date, 69 are overdue. [New York Times, 12/12/2003]

Entity Tags: Defense Contract Audit Agency, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

Halliburton Co agrees to pay a $559 million fine to end an investigation of its former KBR subsidiary if the US government approves the settlement. KBR, formerly Kellogg Brown & Root, has long been accused of violating anti-bribery laws by paying kickbacks to Nigerian officials in return for “sweetheart deals” involving Nigeria’s oil and natural gas fields. The fine, if paid, will be the largest penalty in history against a US company for violations of the Foreign Corrupt Practices Act (FCPA); the settlement would allow Halliburton to avoid having a government monitor put in place, but would require the company to hire an independent consultant to assess its compliance with anti-bribery laws. Halliburton would pay $382 million to the Department of Justice and $177 million to the Securities and Exchange Commission in “disgorgement.” KBR, which has become independent of Halliburton since the incidents in question, refuses to comment on the settlement. The government’s probe of Halliburton/KBR goes back over 20 years, to the construction and expansion of a gas liquefaction facility at Bonny Island, Nigeria. Halliburton has admitted that its agents probably bribed Nigerian officials, and former KBR CEO Albert Stanley has already pled guilty to charges stemming from the Bonny Island bribery scheme. Former Vice President Dick Cheney was Stanley’s immediate supervisor when Cheney was CEO of Halliburton. [Reuters, 1/26/2009]

Entity Tags: Foreign Corrupt Practices Act, US Department of Justice, Kellogg, Brown and Root, Richard (“Dick”) Cheney, US Securities and Exchange Commission, Albert Stanley, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike