25 September 2009
Mabey & Johnson Ltd
sentencing
Mabey & Johnson Ltd
appeared at Southwark Crown Court today for sentence in
relation to admitted offences of overseas corruption and
breaching UN sanctions. The company is to pay £6.6M. This is
the first prosecution brought in the UK against a company
for these offences.
The company, which is a supplier of steel
bridging and is based in Twyford, Berkshire, had already
indicated at a magistrates' court hearing on 10 July 2009
that it would plead guilty to these offences.
Corruption
The prosecution for corruption arises from
the company's voluntary disclosure to the SFO of evidence to
indicate that the company had sought to influence
decision-makers in public contracts in Jamaica and Ghana
between 1993 and 2001. The decision to voluntarily disclose
the corruption offences to the SFO was taken by the
management of Mabey & Johnson's holding company in February
2008 whereupon an investigation was opened.
Breach of UN sanctions
The prosecution for breach of UN sanctions
during 2001/02, as they applied to contracts in the Iraq
“Oil-for-food” programme, arises from an investigation
commenced in January 2007.
During the course of these investigations
the company cooperated with the SFO.
Proceedings
Earlier this year the SFO was given
consent by the Attorney General to bring these proceedings.
Sentence
The company having agreed that it would be
subject to financial penalties to be assessed by the Court,
will pay reparations and will submit its internal compliance
programme to an SFO approved independent monitor. The
details of the sentence today are:
Fines
| Ghana |
£750,000 |
| Jamaica |
£750,000 |
| Iraq |
£2 million |
| Confiscation order |
£1.1million |
Reparations
| Ghana |
£658,000 |
| Jamaica |
£139,000 |
| Iraq |
£618,000 |
| Confiscation order |
£1.1million |
| |
| Costs to the SFO |
£350,000 |
| First year monitoring cost up to |
£250,000 |
Commenting on the conclusion of this
prosecution, SFO Director Richard Alderman said,
“This is a landmark outcome. The first
conviction in this country of a company for overseas
corruption and for breaking the UN Iraq sanctions and,
satisfyingly, achieved quickly. The offences are serious
ones but the company has played its part positively by
recognising the unacceptability of those past business
practices and by coming forward to report them and engage
constructively with the SFO. I urge other companies who
might see some parallels for them, to come and talk to us
and have the matter dealt with quickly and fairly”.
Notes for editors
The text of the two prosecution opening
statements for (a) the corruption offences in relation to
Jamaica and Ghana and (b) breaching UN sanctions in the
oil-for-food programme can be found on our website via the
following link:
www.sfo.gov.uk/mabeyjohnsonltd/
Serious Fraud Office
Elm House,
10-16 Elm Street,
London WC1X 0BJ,
United Kingdom
Press Office tel: 020 7239
7001/7045/7000/7132
Main switchboard tel: 020 7239 7272
Mobile: 0781 807 6688
Email: press.office@sfo.gov.uk
