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Indonesia jails two for Innospec bribery

Indonesia authorities said that as part of the global investigation into chemical maker Innospec Inc, two individuals were convicted and sentenced for bribery offenses.
A court in Jakarta convicted Suroso Atmomartoyo in late October, according to a case update posted by the UK Serious Fraud Office. The court sentenced him to five years in prison.

The former director of state-owned oil and gas giant Pertamina was found guilty of accepting bribes from PT Soegih Interjaya, which acted for Innospec.

Atmomartoyo took cash bribes of $190,000 and a paid visit to London as rewards for Pertaminia’s purchase of Innospec products.
Earlier this year, an Indonesia court sentenced Willy Sebastien Lim, the former owner of Innospec’s intermediary, PT Soegih Interjaya, to three years in prison for paying bribes.

Innospec’s British unit pleaded guilty in the UK in 2010 to bribing Pertamina employees. It paid $12.7 million in penalties to the SFO.

The SFO prosecuted four individuals for the bribery.

A jury in London in 2014 convicted Dennis Kerrison, a former Innospec chief executive, and Miltiades Papachristos, a former regional sales director, of conspiracy and bribery. They bribed Indonesian officials to buy Innospec’s gasoline additive — tetraethyl lead, also known as TEL.

TEL was known to be harmful to people while Innospec was still trying to sell it in less developed countries.

Kerrison was sentenced after appeals to three years in prison and Papachristos to 18 months.

Paul Jennings, the former CEO of Innospec’s UK operations, pleaded guilty in London in June 2011 to two counts of conspiracy to bribe officials in Indonesia and Iraq. He was sentenced to two years in prison.

David Turner, a former business director at Innospec, pleaded guilty in the UK to three counts of conspiracy to corrupt. He was given a 16-month suspended sentence.

In the United States, Delaware-based Innospec paid $27.5 million in 2010 to settle criminal and civil charges of violating the Foreign Corrupt Practices Act and defrauding the United Nations oil-for-food program.

Ousama Naaman, Innospec’s agent in Iraq, pleaded guilty in Washington, DC in June 2010 to conspiracy and substantive FCPA charges. The dual citizen of Canada and Lebanon was sentenced to 30 months in prison and has since been released.

Naaman settled SEC civil charges by paying about $1.2 million in disgorgement and penalties.

The SFO said in the case update that it worked closely with Indonesia’s Corruption Eradication Commission and shared evidence from a UK cooperating witness.

“The convictions in Indonesia bring this global case to a close,” the SFO said.


Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.

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