Settlements

ST-6
ABB Ltd. (Matter #15) / ABB Ltd. - Jordan
ABB Ltd. (Matter #15)
United States
Department of Justice
Iraq (UN Oil-for-Food)
2010
09/29
Unknown
Legal Person
Criminal
Deferred Prosecution Agreement
Criminal Fine
$1,920,000.00
$1,920,000
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7
Conspiracy to falsify books and records, Conspiracy to commit wire fraud, Money laundering
Conspiracy to falsify books and records, Conspiracy to commit wire fraud, Money laundering
Yes
According to the June 2011 United States Report to the OECD, "On September 29, 2010, the Department also charged ABB Ltd's Jordanian subsidiary, ABB Ltd - Jordan, with one count of conspiracy to commit wire fraud and to violate the books and records provisions of the FCPA. According to court documents, from 2000 to 2004, ABB Ltd - Jordan and other ABB subsidiaries paid, or caused to be paid, more than $800,000 in kickbacks to the former Iraqi government to secure 27 contracts under the U.N. Oil-for-Food Program (OFFP). For example, from 2001 to 2002, ABB Ltd - Jordan paid more than $300,000 in kickbacks to three regional companies of the Iraqi Electricity Commission, an Iraqi government agency, in order to secure 11 purchase orders worth more than $5.9 million. All together, ABB subsidiaries allegedly earned more than $13,500,000 in revenue and $3,800,000 in profits from contracts obtained through illegal kickbacks under the OFFP." (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, ABB Ltd. Case Summary (#15) at 37-39.)