» KBR Pleads Guilty – Get’s Slap On Wrist Ms Sparky

KBR Pleads Guilty – Get’s Slap On Wrist

February 11, 2009 — Ms Sparky

KBR pleads guilty in Nigeria bribes case

By TOM FOWLER Houston Chronicle Copyright 2009
Feb. 11, 2009, 11:46AM

Houston-based KBR pleaded guilty today to federal criminal charges alleging it paid millions of dollars in bribes to Nigerian officials to win contracts to build a massive natural gas project in the country.

The engineering giant and military contractor will pay $402 million in fines and spend three years under the watch of a court-appointed monitor, according to the plea agreement entered before U.S. District Judge Keith Ellison.

KBR General Counsel Andrew Farley entered the guilty plea on behalf of the company.

The five charges—one count of conspiring to violate the Foreign Corrupt Practices Act and four counts of violating the act—stem from allegations of a decade-long scheme in which KBR, through intermediaries, paid more than $180 million in bribes to Nigerian officials to land contracts to build a $6 billion gas liquefaction plant on Nigeria’s Bonny Island.
Gas liquefaction is the process of turning natural gas into a liquid so it can be transported on tankers.

Last September, Albert “Jack” Stanley, a former chairman of the company previously called Kellogg Brown & Root, admitted he took part in the dealings. Stanley, of Houston, served as Kellogg Brown & Root’s senior representative on a Madeira, Portugal-based consortium known as TSKJ, which was awarded four separate contracts for work on that complex.

Stanley is scheduled to be sentenced on May 6.

Last month Halliburton, the former parent company of KBR, said it planned to pay nearly $560 million to settle allegations related to the case, but it’s not clear if that includes the $402 million KBR fines. Under terms of KBR’s spinoff from Halliburton, which was completed in April 2007, Halliburton agreed to cover KBR “for certain contingent liabilities” related to any fines that come out of the case, according to filings by both companies. (Click HERE for original article)

Maybe the Pentagon will take another look at KBR’s contracts now. It’s time to cut the “KBR cord”. Cheney’s gone, Bush is gone….the pentagon needs to cut their losses and DEBAR KBR from Federal contracts!

Ms Sparky

Update: This was added right after I published the original post. KBR’s William Utt makes a statement. Feb 11, 2009. What a bunch of BS.

Statement from William P. Utt, KBR Chairman, President and CEO:

“Today’s settlements announced by the Department of Justice (DOJ) and the Securities Exchange Commission (SEC) close both a regrettable and unfortunate chapter in KBR’s rich and storied history. KBR has fully cooperated with the U.S. Government throughout the extensive investigations over the last five years.

These settlements resolve criminal and civil liabilities in the United States that KBR has faced prior to becoming an independent public company in April 2007. It is important to point out that all of the alleged misconduct occurred prior to June of 2004 and involved individuals who are former management, employees, and agents of KBR subsidiaries and predecessor entities. None of the allegations involved current KBR management and/or employees.

As we have stated many times in the past, and particularly in light of the past actions of KBR’s former management and their advisors giving rise to today’s settlements, KBR in no way condones or tolerates illegal or unethical behavior. Conducting our business with the utmost integrity is at the core of the work we perform each day. KBR maintains a formal Code of Business Conduct and each employee is expected to adhere to KBR’s Code of Business Conduct which exemplifies the company’s unwavering commitment to honesty, ethics and integrity.

While today’s actions are unfortunate and regrettable, I am pleased to finally conclude this very difficult but necessary settlement. I remain confident as KBR looks to its future that our more than 60,000 employees will continue to adhere to our Code of Business Conduct and embody the company’s key focus areas of transparency, accountability, financial responsibility and discipline. It is through this continued commitment to our Code of Business Conduct and core values that I remain optimistic about KBR’s path forward, future growth, and success as one of the world’s leading engineering, construction and services companies.”

KBR is a global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

KBR
Director, Communications
Heather Browne, 713-753-3775
heather.browne@kbr.com
or
Director, Investor Relations
Rob Kukla, Jr., 713-753-5082
investors@kbr.com

(Click HERE for a link to the original article)

Ms Sparky