Samsung Heavy Industries To Pay $75 Mln To Settle Bribery Case
The Justice department has fined Samsung Heavy Industries, the engineering company of the South Korean conglomerate, over $75 million to settle a bribery case.
According to DoJ, Samsung violated the Foreign Corrupt Practices Act after it paid millions of dollars in bribes to officials in Brazil.
“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division.
Samsung Heavy Industries admitted that from 2007 to 2013 it provided about $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company.
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said U.S. Attorney Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that corporations do not engage in foreign bribery. We will continue to hold corporations accountable.”
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