NEW YORK, Dec 20 — US-based manufacturer Honeywell International Inc yesterday said it has agreed to pay about US$200 million (RM885.1 million) to settle criminal and civil corruption investigations in the United States and Brazil.
The US Justice Department and US Securities and Exchange Commission (SEC) each announced the resolution of parallel investigations relating to bribes that Honeywell paid between 2010 and 2014 to a high-ranking official at Brazil’s state-owned oil company Petrobras to secure business.
The SEC charges also relate to payments Honeywell’s Belgian subsidiary made to an Algerian government official in 2011. Those bribes involved Monaco-based oil consultancy Unaoil, which has previously been charged by global authorities over a 17-year scheme to pay bribes to officials in nine countries.
Honeywell Chairman and Chief Executive Officer Darius Adamczyk said the company is “pleased” to have the matter behind it, noting that it had received full cooperation credit.
About US$160 million of the total amount Honeywell said it will pay will go to pay US civil and criminal penalties.
Later yesterday, Brazil’s government confirmed Honeywell’s statement by saying the company would pay about 638 million reais (RM533.4 million) to settle the case, with around 70 per cent destined for Petrobras.
US prosecutors agreed to defer potential prosecution against the firm for three years in exchange for a criminal penalty of about US$79 million and promise of continued cooperation in any other investigations, among other things, the Justice Department said.
Honeywell agreed to pay another US$81 million civil penalty to resolve the SEC’s charges, though almost half is expected to be offset by payments made to Brazilian authorities, the SEC said. — Reuters
