SBM Offshore NV said that “there is some evidence” the company made payments to government officials in Angola and Equatorial Guinea, and is discussing the matter with U.S. and Dutch authorities.
The Dutch oil-services provider said in a statement that it completed an internal investigation into alleged improper payments to government officials that began in early 2012. SBM said it is discussing the disclosure of its findings with Dutch prosecutors, and it is continuing its engagement with the U.S. Justice Department that began in April 2012. For U.S. issuers, bribery of foreign officials for business purposes, even if the conduct is committed overseas, violates the Foreign Corrupt Practices Act.
“These authorities will form their own judgment on these issues. New information could surface in the context of the review by these authorities or otherwise which has not come up to date in the internal investigation,” the company warned.
SBM focused its internal investigation on the company’s use of agents between 2007 and 2011, finding that it paid $200 million in commissions in that time, the majority of which went to Brazil, with $18.8 million to Equatorial Guinea and $22.7 million going to Angola.
The company said “there were certain red flags” in Brazil, but the probe didn’t find any evidence SBM or its agent made improper payments to government officials. Earlier this week, Petrobras Brasileiro SA said it found no wrongdoing by its employees in connection with SBM contracts.
Written by Samuel Rubenfeld/Read more at The Wall Street Journal