Settlements

ST-59
Balfour Beatty plc
Balfour Beatty plc
United Kingdom
Serious Fraud Office
Egypt
2008
10/06
Unknown
Legal Person
Civil
Civil Recovery Order (Proceeds of Crime Act)
Civil Recovery Order, Legal Costs
$3,983,920.00
$3,983,920
$0
$0
Unspecified amount (Legal Costs)
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Irregular payments relating to a contract
Inaccurate business records (Section 221 Companies Act 1985)
Yes
According to the UK Serious Fraud Office Press Release, in April 2008 the SFO obtained the power to issue civil recovery orders under the Proceeds of Crime Act 2002, under which the SFO can recover property obtained by unlawful conduct. The October 8, 2009 SFO press release noted that "These provisions do not require a specific offence to be established against any particular company or individual, merely tht the property sought is the proceeds of unlawful conduct." Balfour Beatty brought the payment irregularities to the attention of the SFO; the payments occurred within a subsidiary entity [name not mentioned in the press release] during the construction of The Bibliotheca Project in Alexandria, Egypt, completed in 2001; the project was undertaken by a Balfour Beatty subsidiary in a joint venture with an Egyptian company. In a Consent Order agreed to on October 6, 2008 before the High Court, Balfour Beatty agreed to a settlement payment of GBP 2.25 million together with a contribution towards the costs of the Civil Recovery Order proceedings. (Source: UK Serious Fraud Office, "Balfour Beatty plc," October 6, 2008, accessed at http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2008/balfour-beatty-plc.aspx). Balfour Beatty plc also announced the settlement in a statement released on October 8, 2008: "Balfour Beatty reaches full settlement of issues relating to Bibliotheca Alexandrina [sic] project," accessed at http://www.balfourbeatty.com/index.asp?pageid=42&newsid=173.