Asset Recovery Watch

ARW-118
Mabey & Johnson (Iraq)
United Kingdom
Saddam Hussein (President, 1979-2003)
Iraq [Development Fund for Iraq]
2007
Unknown
Art.16
Criminal Prosecution; Criminal Restitution
Unknown
Restitution was paid to the Development Fund for Iraq.
The Serious Fraud Office cited Mabey and Johnson's guilty plea and cooperation. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson Ltd sentencing," September 25, 2009.) The SFO also noted that "A Development Fund for Iraq was set up internationally and payments in Oil for Food cases are made to that fund. There is therefore an international mechanism for compensation." (Source: UK House of Commons International Development, Financial Crime and Development, Eleventh Report of Session 2010-12 (15 November 2011), Volume 1, at Ev38.)
Completed
Assets Returned to Victim or Requesting Jurisdiction
$1,002,790
Yes
Restitution was paid to the Development Fund for Iraq, which was established for payments in Oil for Food cases.

According to information presented by the Serious Fraud Office to the UK Parliamentary Committee on International Development, the sums ordered against Mabey and Johnson were returned to Iraq through the Development Fund for Iraq. (Source: UK House of Commons International Development, Financial Crime and Development, Eleventh Report of Session 2010-12, Volume 1, at Ev38.) On September 25, 2009, Mabey and Johnson was ordered to pay in reparations of GBP 618,000 to Iraq, for its activities in contravention of United Nations sanctions against Iraq. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson Ltd sentencing," September 25, 2009, and Prosecution Opening Notes.) In February 2011, the Serious Fraud Office announced the conviction of two former directors of Mabey & Johnson, and included mention that the company had paid GBP 618,000 to the Iraq Reconstruction Fund [also known as the Development Fund for Iraq.]. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson directors made illegal payments to Sadam Hussein's Iraq to gain contract," February 10, 2011.) On February 23, 2011, Richard Charles Edward Forsyth, former managing director, was ordered to pay prosecution costs of GBP75,000 (US$121,241) and David Mabey, former sales director, was ordered to pay prosecution costs of GBP125,000 (US$202,069). No monetary penalty was assessed against a third executive, Richard Gledhill, former sales manager. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson Ltd: Former executives jailed for helping finance Saddam Hussein's government," February 23, 2011.)

Unknown as to Iraqi Public Officials. According to a September 25, 2009 press release by the UK's Serious Fraud Office, Mabey & Johnson appeared before the Southwark Crown Court that day to be sentenced for admitted offences of overseas corruption offences and breaching UN sanctions. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson Ltd sentencing," September 25, 2009.) The Serious Fraud Office also issued a press release on February 11, 2011, accouncing the conviction of two former Mabey & Johnson directors in the case. (Source: UK Serious Fraud Office Press Release, "Mabey & Johnson directors made illegal payments to Sadam Hussein's Iraq to gain contract," February 10, 2011.)

UK Serious Fraud Office
Crown Prosecution Service
Southwark Crown Court