Settlements

ST-211
Innospec Inc. / Innospec Ltd (UK)
Innospec Inc.
United Kingdom
Serious Fraud Office
Indonesia; Iraq (UN Oil-for-Food)
2010
03/18
United States
Legal Person
Civil
Civil Recovery Order (Proceeds of Crime Act)
Civil Recovery Order
$12,700,000.00
$0
$12,700,000
$0
$0
Unspecified
Art.16, Art.26
Art. 1, Art. 2
Bribery of foreign officials
Bribery of foreign officials
Yes
According to the UK Serious Fraud Office Press Release, "On 18 March 2010, Innospec Ltd appeared before Lord Justice Thomas at Southwark Crown Court and entered a plea of guilty to bribing employees of Pertamina (an Indonesian state owned refinery) and other government officials in Indonesia. At that hearing the judge indicated he would impose a financial penalty of the sterling equivalent of US$12.7 million and he adjourned sentencing and remarks to today. In sentencing today, Lord Justice Thomas stated that that sum is to be paid by way of a fine. The 14-page judgment also includes guidance." The Judgment details the discussions between the United States and the United Kingdom with regards to the financial settlements by the two countries. (Sources: US Serious Fraud Office Press Release, "Innospec Judgment," March 26, 2010 and R. v. Innospec Limited, In the Crown Court at Southwark, Sentencing remarks of Lord Justice Thomas (26 March 2010).) In the Judgment, Lord Justice Thomas noted: "Through agents in Indonesia, the directing minds of the company engaged in systematic and large-scale corruption of senior Government officials. Those corrupted in this way included Rachmat Sudibyo, Director-General of Oil and Gas in the Ministry of Energy and Mineral Resources in Indonesia and subsequently Chairman of Migas, an authority that regulated oil and gas in Indonesia, and Suroso Atmomartoyo, a Director of Pertamina, the Indonesian state oil company, and one of the most senior members of its management. The bribes paid to Rachmat Sudibyo exceeded $1 million. [ ] It is not possible to calculate precisely the total amount of the bribes, but the best estimate is approximately 5% of $160 million, namely $8 million." (Source: R. v. Innospec Limited, In the Crown Court at Southwark, Sentencing remarks of Lord Justice Thomas (26 March 2010).)