Kellogg Brown & Root LLC, Technip S.A., and JGC Corp. agreed to pay $17 million in penalties in a settlement with the African Development Bank (ADB) for corrupt practices by affiliated companies in connection with contracts for liquefied natural gas production plants on Bonny Island, Nigeria from 1995 until 2004.
The ADB said it reached Negotiated Resolution Agreements with the three companies on March 21.
The Bank’s Integrity and Anti-Corruption Department levied penalties against KBR of $6.5 million, against Technip of $5.3 million, and against JGC of $5.2 million.
“The funds will flow to projects preventing and combating corruption in the Bank’s member countries on the African continent,” the ADB said.
The three companies, along with Snamprogetti, were partners in the TSKJ Nigeria consortium that won the Bonny Island contracts. The African Development Bank Group contributed $100 million in financing to the overall contract value of $6 billion.
From 1995 to 2004, the TSKJ companies made improper payments of $180 million in return for the award of the Bonny Island contracts.
The other partner, Snamprogetti, paid $365 million in 2010 to U.S. enforcement agencies for FCPA offenses. Snamprogetti wasn’t included in the ADB action announced in March.
The Bank said it will debar for three years TSKJ – Serviços de Engenharia Lda, TSKJ II – Construções Internacionais Sociedade Unipessola Lda, and LNG – Serviços and Gestão de Projetos Lda., based in Madeira, Portugal.
“The companies are eligible for cross debarment under the April 2010 Agreement for Mutual Enforcement of Debarment Decisions entered into by the African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development, the World Bank Group and the Inter-American Development Bank Group,” the ADB said.
Anna Bossman, Director of the Bank’s Integrity and Anti-Corruption Department, said: “These ground-breaking Negotiated Resolution Agreements substantially advance the Bank’s anti-corruption and governance agenda, a strategic priority of our institution.”
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.