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.
Securities and Exchange Commission
Bangladesh, Egypt, India, Indonesia, Iraq (UN Oil-for-Food), United Arab Emirates
Internal Controls Violations, Falsification of Books and Records
No admission or denial of alleged offenses
According to the June 2011 United States Report to the OECD, "On August 23, 2007, Textron, Inc., a Rhode Island-based industrial equipment company, settled allegations with the Department of Justice and the SEC relating to kickbacks paid to the former Government of Iraq under the United Nations Oil for Food Program (OFFP). As part of a consent agreement with the SEC and a non-prosecution agreement with the Department, Textron acknowledged responsibility for kickbacks paid to the Iraqi government by its David Brown French subsidiaries in exchange for contracts worth $1,936,936 to provide industrial pumps, gears, and other equipment to Iraqi ministries under the OFFP. According to settlement documents, the subsidiaries in Textron's Fluid and Power Business Unit paid a total of more than $650,000 in kickbacks by inflating the price of contracts by 10 percent before submitting the contracts to the U.N. for approval. These kickback payments, which bypassed the U.N. escrow account, were paid by third parties to Iraqi government-controlled accounts. During the course of its own internal investigation, Textron also uncovered an additional 36 illicit payments totaling almost $115,000 that were made to officials of state-owned companies in countries other than Iraq, including the United Arab Emirates, Bangladesh, Indonesia, Egypt, and India, in order to obtain similar contracts." (Source: Report by the United States to the OECD, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," June 2011, Textron inc. Case Summary, at 99-100.)
Report by the United States to the OECD, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," June 2011, Textron inc. Case Summary, at 99-100, accessed at http://www.oecd.org/dataoecd/18/8/42103833.pdf. SEC v. Textron, Inc. (D.D.C.), Complaint filed on August 23, 2007 and Final Judgment filed August 31, 2007, accessed at http://fcpa.shearman.com/files/479/479ab232d795496347543f9673c118e3.pdf?i=b403e47bd0a0e0e148a9d284811430d3 and http://fcpa.shearman.com/files/2a9/2a95205e0169f1db9e04408b41e6ddc6.pdf?i=7c4b4d50118071cab831985af973acff, respectively. SEC press release accessed at; http://www.sec.gov/litigation/litreleases/2007/lr20251.htm
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