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Japanese Company Discloses Department of Justice FCPA investigation
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August 4th, 2010UncategorizedJapanese engineering company JGC corporation disclosed that it is in negotiation with U.S. justice Department about resolve potency Foreign Corrupt pattern Act complaint stemming from the company’s engagement in a decade-long strategy to payoff Federal Republic of Federal Republic of Nigeria official for building contracts to habitus liquefied natural gaseous state facility on Bonny island Nigeria.
“We hereby report that Department of justice has been in contact with JGC regarding their probe of the TSKJ matter and JGC and Department of justice are engaged in discussion about a potential resolution of that probe relating to JGC,” the company said in its annual written report “Under the current circumstances, the impact of the ongoing discussions with DOJ on JGC’s trading operations cannot be estimated.”
JGC did not say whether it also is under probe in Japanese Archipelago for the Nigerian deals.
The potential settlement would be the last to come from a four-company syndicate involved with the Bonny island project, which has been under probe since 2004 for a potpourri of FCPA offence connected to a $100 million bribery strategy to secure the contracts.
The syndicate was awarded four engineering, procurement and building contracts by Nigeria LNG Ld. between 1995 and 2004 to habitus liquefied natural gas facility on Bonny Island. The government-owned Nigerian National Petroleum corporation was the largest shareholder of NLNG, owning 49 percent of the company The syndicate is equally owned by KBR, INC and Halliburton Co.; French engineering business house Technip S.A.; Italian energy business firm ENI, spa and its former Dutch underling Snamprogetti Holland B.V.; and JGC.
On July 7, the justice Department and the security and exchange commission announced that ENI, spa and its underling Snamprogetti agreed to salary $365 million to settee complaint that Snamprogetti participated in the bribery strategy The declaration came on the heel of a $338 million settlement the agency announced last week with Technip, and a $579 settlement with KBR and Halliburton the second and Department of justness entered into last year.
The venture hired two agents, Jeffrey Tesler and a Japanese trading company, who paid payoff to high-level Nigerian government official to facilitate the consortium’s command for the contracts. according to court documents. Tesler and Wojciech Chodan, a former sales representative and adviser of a United Kingdom underling of KBR, were indicted in February 2009 for their alleged engagement in the bribery strategy In March, a British justice cleared the way for Tesler and Chodan’s extradition to the United States.
JGC does not issue stock on any U.S. government exchanges, and thus does not fall under the FCPA’s jurisdiction as an issuer But according to a mortal familiar with the matter, the U.S. government government government believes there is jurisdiction to pursue JGC based on plotter liability The individual said JGC’s negotiation with the justice Department could result in a settlement.
JGC is represented by Manuel A Abascal, a married person at Latham & Watkins LLP.
The FCPA web log first reported the news here.
Aruna Viswanatha contributed to this report.
