NEW YORK—Royal Dutch Shell Plc and six other companies in the oil services industry, will pay around $237 million to settle a U.S. probe of overseas bribery by the Securities and Exchange Commission (SEC) and the Department of Justice.
The companies named in the SEC settlement are Shell, Panalpina Inc., Transocean Inc., Pride International Inc., Tidewater Inc., Noble Corp., and GlobalSantaFe Corp.
These seven firms allegedly bribed customs officials in more than 10 countries in exchange for favorable transfer of goods, avoidance of certain duties, and other benefits from many countries.
“Bribing customs officials is not only illegal but also bad for business, as the coordinated efforts of law enforcement increase the risk of detection every day,” said Robert Khuzami, director of the SEC’s Division of Enforcement, in a statement.
“These companies resorted to lucrative arrangements behind the scenes to obtain phony paperwork and special favors, and they landed themselves squarely in investigators’ crosshairs.”
By settling with the regulators, the companies neither confirm nor deny the allegations of bribery, which stems from the U.S. Foreign Corrupt Practices Act, which prevents U.S. companies from bribing officials for business purposes abroad.
The companies agreed to pay fines totaling $156.5 million, and an additional $80 million in disgorgement and penalties, bringing the total settlement to $236.5 million.
According to the Department of Justice, Panalpina Inc., a subsidiary of Swiss freight company Panalpina World Transport (Holding) Ltd., pleaded guilty to certain charges of bribery on behalf of its customers in violation of the Foreign Corrupt Practices Act. Such payments were often disguised in customer invoices as “special intervention” or “special handling” fees, according to the SEC.
Panalpina agreed to pay a $70.6 million fine.
The companies named in the SEC settlement are Shell, Panalpina Inc., Transocean Inc., Pride International Inc., Tidewater Inc., Noble Corp., and GlobalSantaFe Corp.
These seven firms allegedly bribed customs officials in more than 10 countries in exchange for favorable transfer of goods, avoidance of certain duties, and other benefits from many countries.
“Bribing customs officials is not only illegal but also bad for business, as the coordinated efforts of law enforcement increase the risk of detection every day,” said Robert Khuzami, director of the SEC’s Division of Enforcement, in a statement.
“These companies resorted to lucrative arrangements behind the scenes to obtain phony paperwork and special favors, and they landed themselves squarely in investigators’ crosshairs.”
By settling with the regulators, the companies neither confirm nor deny the allegations of bribery, which stems from the U.S. Foreign Corrupt Practices Act, which prevents U.S. companies from bribing officials for business purposes abroad.
The companies agreed to pay fines totaling $156.5 million, and an additional $80 million in disgorgement and penalties, bringing the total settlement to $236.5 million.
According to the Department of Justice, Panalpina Inc., a subsidiary of Swiss freight company Panalpina World Transport (Holding) Ltd., pleaded guilty to certain charges of bribery on behalf of its customers in violation of the Foreign Corrupt Practices Act. Such payments were often disguised in customer invoices as “special intervention” or “special handling” fees, according to the SEC.
Panalpina agreed to pay a $70.6 million fine.
