28th Jun 2021 10:53
(Alliance News) - John Wood Group PLC on Monday said it has reached several agreements with several regulatory authorities in the UK, US and Brazil to resolve their bribery and corruption investigations involving the group's legacy Amec Foster Wheeler business.
Specifically, the Aberdeen-based energy services provider has signed the agreements with the UK's Serious Fraud Office, the Department of Justice and Securities & Exchange Commission in the US, as well as the Ministerio Publico Federal, Comptroller General's Office and Solicitor General in Brazil.
Under the terms of the deal, John Wood will pay USD177 million in compensation, disgorgement & prejudgement interest, fines and penalties. The payment will be phased over a three-year period with USD62 million paid in the second half of 2021, and the remainder in instalments in 2022, 2023 and 2024.
The settlement is related to historical conduct which occurred before Amec acquired Foster Wheeler in 2014, and before John Wood itself bought the combined firm in 2017.
In addition, John Wood has agreed to a three-year deferred prosecution agreement with the SFO, in relation to the use of third parties in bribery and corruption in five countries. John Wood and the SFO will seek approval of the DPA from the Crown Court on Thursday.
A similar agreement has been signed with the US DoJ, alongside a cease & desist order with the SEC, and leniency agreements with 18-month terms with the Brazilian authorities.
"The investigations brought to light unacceptable, albeit historical, behaviour that I condemn in the strongest terms. Although we inherited these issues through acquisition, we took full responsibility in addressing them, as any responsible business would," said Chief Executive Robin Watson.
"Since our acquisition of Amec Foster Wheeler, we have cooperated fully with the authorities and have taken steps to further improve our ethics and compliance programme from an already strong foundation. I'm pleased that, subject to final court approval in the UK, we have been able to resolve these issues and can now look to the future," Watson added.
Shares in John Wood were down 0.4% at 216.30 pence on Monday in London.
By Dayo Laniyan; [email protected]
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