The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
Baker Hughes Incorporated / Baker Hughes, Inc. (September 12, 2001 SEC Cease and Desist Order)
Bribery of foreign officials, False accounting, Internal controls violations, Falsification of books and records
No admission or denial of alleged offenses
According to the US Securities and Exchange Commission Administrative Proceeding File, "In March 1999, Baker Hughes' CFO and its Controller authorized an illegal payment, through KPMG, its agent in Indonesia, to a local government official in Indonesia. Baker Hughes, through its CFO and Controller, directed that this improper payment be made while knowing or aware that KPMG would pass all or part of the payment along to a foreign government official for the purpose of influencing the official's decision affecting the business of Baker Hughes. This improper payment was made in violation of the Foreign Corrupt Practices Act ("FCPA"). In addition, in 1998 and 1995, senior managers at Baker Hughes authorized payments to Baker Hughes' agents in India and Brazil, respectively, without making an adequate inquiry as to whether the agents might give all or part of the payments to foreign government officials in violation of the FCPA. Baker Hughes improperly recorded all three transactions in its books and records as routine business expenditures. In addition to its false books and records, Baker Hughes also failed to devise and maintain an adequate system of internal accounting controls to detect and prevent improper payments to foreign government officials and to provide reasonable assurance that transactions were recorded as necessary to permit the preparation of financial statements in conformity with Generally Accepted Accounting Principles." (Source: US Securities and Exchange Commission, In the Matter of Baker Hughes, Inc., Administrative Proceeding File No. 3-10572 [September 12, 2001].)
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, Baker Hughes Incorporated Case Summary at 106-107, accessed at http://www.oecd.org/dataoecd/18/8/42103833.pdf. US Securities and Exchange Commission, In the Matter of Baker Hughes, Inc., Administrative Proceeding File No. 3-10572 (September 12, 2001), accessed at http://www.sec.gov/litigation/admin/34-44784.htm
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