ABB Pays $58m to Settle Corruption Case

The Iraqi government in mid-2000, under the U.N. Oil for Food Program, demanded that suppliers of humanitarian goods pay a kickback of around 10 percent to win the contract, in violation of sanctions, the court documents said.

The company between April 2000 and April 2004 submitted contracts to the United Nations for approval without disclosing that the prices of the goods had been inflated so the extra money would be used for kickbacks.

ABB agreed to pay $19m in criminal penalties. It also agreed to pay $39.3m to settle a parallel civil probe by the Securities and Exchange Commission into the alleged corruption in both Iraq and Mexico. The company did not admit or deny wrongdoing in settling the action.

(Sources: Financial Times, Reuters, Associated Press)

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