Settlements

ST-264
MacMillan Publishers Limited
Macmillan Publishers Limited
United Kingdom
Serious Fraud Office
Zambia, Rwanda, Uganda
2010
07/22
World Bank
Legal Person
Administrative
Civil Recovery Order (Proceeds of Crime Act)
Civil Recovery Order, Legal Costs
$18,298,658.80
$0
$18,254,901
$0
$0
$43,758
Legal Costs
$0
Art.16, Art.26
Art. 1, Art. 2
Sums derived from unlawful conduct
Sums derived from unlawful conduct
Yes
According to a UK Serious Fraud Office press release, on July 22, 2011, the SFO obtained a Civil Recovery Order through the High Court in which Macmillan Publishers Limited will pay GBP 11,263,852.28 and also pay the SFO costs of pursuing the order which amount to GBP 27,000 (US$ 43,757.80). The SFO acted on a referral from the World Bank regarding a World Bank tender to supply educational materials in Southern Sudan. The SFO, in cooperation with the City of London Police and the World Bank selected the three jurisdictions - Rwanda, Uganda and Zambia - in relation to which it would require the company's external lawyers to conduct detailed investigations into all public tender contracts in these three jurisdictions over the period of 2002-2009 whether funded by the World Bank or otherwise. These jurisdictions fell within the business activities of Macmillan's Education Division in East and West Africa. The press release stated that "It was impossible to be sure that the awards of tender to the Company in the three jurisdictions were not accompanied by a corrupt relationship." Richard Alderman, the then-Director of the SFO stated,"Civil recovery allows us to deal with certain cases of corporate wrong-doing effectively. It delivers value for money to the public by saving the cost of lengthy investigations and protracted legal proceedings and removes any property obtained as a result of wrong-doing. At the same time it forces the company to reform its practices for the future." (Source: UK Serious Fraud Office Press Release, "Action on Macmillan Publishers Limited," July 22, 2011, accessed at http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2011/action-on-macmillan-publishers-limited.aspx.)