5th Oct 2021 06:59
(Alliance News) - Petrofac Ltd on Monday was fined GBP77 million by the UK Serious Fraud Office and Southwark Crown Court for seven bribery offences, to which the Jersey-based provider of services to oil and gas industry had pleaded guilty last month.
The penalty consists of a confiscation order of GBP22.8 million, due at the start of January, plus a fine of GBP47.2 million and the SFO's costs of GBP7 million, both due in mid-February.
The bribes were paid or offered by Petrofac employees to buying agents as part of project bids from 2012 to 2015. "Over a period of six years, senior executives within the Petrofac group engaged in elaborate schemes to corrupt the awarding of contracts, using agents to systematically bribe officials to win lucrative contracts by unfair and dishonest means," the SFO said.
Petrofac noted that all the employees involved now have left the company.
"By pleading guilty, Petrofac Ltd has accepted that senior executives within the Petrofac group acted deliberately and without conscience in the pursuit of greed," commented Lisa Osofsky, an SFO director. "The company's failure to prevent this conduct distorted competitive market conditions and tainted the oil and gas industry."
The SFO noted this was the third set of convictions secured by the SFO in its four-year investigation of Petrofac. It said it continues to investigate the case.
Petrofac shares rose in response to the announcement, closing up 4.6% at 182.00 pence on Monday. The stock is up 32% so far in 2021.
"This draws a line under a regrettable period of our history," said Petrofac Chair Rene Medori. "We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice."
Commented Laura Hoy, an equity analyst at Hargreaves Lansdown: "The monetary loss will be a relief, since far higher numbers were bandied around at the start of the investigation, and Petrofac is more than capable of covering the fine...The bigger story is that the end of the investigation will unlock the lucrative Saudi Arabia and UAE markets."
By Tom Waite; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Petrofac