ABB Ltd. ("ABB"), headquartered in Zurich, Switzerland, was a global provider of power and automation technologies.
From at least 1998 through 2001, ABB Vetco Gray Inc., and ABB Vetco Gray UK Ltd. (ABB's U.S. and UK subsidiaries) provided over $1.1 million in illicit payments and gifts to government officials in Nigeria, Angola, and Kazakhstan. In Nigeria, illicit payments and gifts were made to gain access to non-public bid tender information, and to secure favorable consideration on Vetco Gray Nigeria bids from the National Petroleum Investment Management Service ("NAPIMS"), the Nigerian state-owned agency responsible for overseeing Nigeria's investment in petroleum exploration and production. In Angola, ABB's U.S. and UK subsidiaries paid all the travel, meals, lodging and entertainment expenses of Sonangol engineers who had responsibility for the technical evaluation of bids submitted to Sonangol, in order to obtain and retain business with Sonangol. In Kazakhstan, ABB Kazakhstan Ltd. ("ABB KZ"), made payments to Kazakhstan companies owned by ABB KZ's former sales manager who was, at the time of the payments, a government official employed in Kazakhstan's state oil and gas companies. These payments were made for the purpose of obtaining or retaining Kazakhstan government business for ABB Vetco Gray Inc. and ABB KZ.
On July 2, 2004, the SEC filed a complaint against ABB, charging the company with violating the anti-bribery, books and records, and internal controls provisions of the FCPA. On November 30, 2004, ABB consented to the entry of a final judgment permanently enjoining the company from future violations of the FCPA. ABB was ordered to pay $5,501,157 in disgorgement, $414,248 in prejudgment interest, and a $10,500,000 civil penalty, which was deemed satisfied by the payment of fines, totaling $10,500,00, by ABB subsidiaries ABB Vetco Gray, Inc. and ABB Vetco Gray UK Ltd, in the parallel criminal case.
In a related action, on July 6, 2004, ABB Vetco Gray Inc. and ABB Vetco Gray UK Ltd both entered into plea agreements with the DOJ. Each company agreed to pay a $5,250,000 fine.
