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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into ABB's Activities in West Africa Between 1997 and 2002 · ABB Ltd.

Information & Summary

Investigation into ABB's Activities in West Africa Between 1997 and 2002

Related FCPA Matter:   ABB's Involvement in Nigeria, Angola, and Kazakhstan from 1998 to 2002 Information

Information & Summary

Investigation Name:    Investigation into ABB's Activities in West Africa Between 1997 and 2002

Trend:    None

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:    Unknown

Whistleblower:    Yes

Summary

ABB Ltd is a Swedish–Swiss multinational corporation headquartered in Zürich, Switzerland and is organized under the laws of Switzerland. It operates mainly in robotics, power, heavy electrical equipment, and automation technology areas.

During 2002 and 2003, ABB Ltd. undertook an investigation of potentially improper business conduct within its oil, gas and petrochemical division. In such internal investigations, ABB uncovered a limited number of improper payments by some employees and agents in the business in Africa, Central Asia, and South America, which was voluntarily disclosed to the DOJ and SEC. The payments were made in order to obtain from local officials confidential information and commercial advantages, including with respect to contracts on which ABB was bidding.

ABB undertook voluntary remedial action, which included terminating the improper payments, terminating contracts with an individual and companies believed to have been involved in the improper payments, replacing senior management at the relevant subsidiary, as well as making sure the responsible employees were disciplined with a range of sanctions including severance of employment, loss of compensation and title, formal reprimands and ethics counseling and training. ABB also hired outside experts to assist in the correction of the books and records to properly record the payments and it has provided additional ethics and compliance training.

In its September 24, 2004, 20-F filing, ABB disclosed that it had agreed to a civil settlement with the SEC, as well as a criminal fine paid to the DOJ.

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