Textron Inc.
Textron Inc.
United States
Securities and Exchange Commission
Bangladesh, Egypt, India, Indonesia, Iraq (UN Oil-for-Food), United Arab Emirates
Legal Person
Consent to Permanent Injunction
Disgorgement, Prejudgment Interest, Civil Penalty
Art.16, Art.26
Art. 1, Art. 2, Art. 8
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.)