Tenaris, S.A.
Tenaris, S.A.
United States
Securities and Exchange Commission
Legal Person
Deferred Prosecution Agreement
Disgorgement of Profits, Prejudgment Interest
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Bribery of foreign officials, Falsification of books and records, Internal controls violations
No admission or denial of allegations
According to the United States June 2011 "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Report to the OECD, "This enforcement action marked the first-ever use of a DPA [Deferred Prosecution Agreement] to facilitate and reward cooperation in a SEC investigation." (at 11) Please note that the Tenaris DPA with the SEC includes a "Statement of Facts," but as noted in the document, Tenaris agreed to the settlement "without admitting or denying the allegations" made against it by the SEC. (Source: In Re Tenaris, S.A., SEC Deferred Prosecution Agreement, May 17, 2011.) According to the DPA, "Between in or around April 2006 through May 2007, Tenaris bid on a series of contracts with OJSC O'ztashqineftgaz ("OAO"), to supply OAO with pipeline for use in the development and production of oil and natural gas in Uzbekistan. OAO was a subsidiary ofUzbekneftegaz, the state-owned holding company of Uzbekistan's oil and gas industry." The SEC had alleged that Tenaris retained an agent in connection with those contract bids and made commission payments to the agent, and that "Tenaris's then-regional sales personnel understood that a portion of the commission Tenaris paid to the Agent for services related to contracts M-07-53, M-0770, M-07-71 and M-07-72 would be used to pay OAO officials for opening competitors' bids, providing confidential bid information to Tenaris, and replacing Tenaris's original bids with its revised bids." (at para 6n)