Friday, February 13, 2009
Kellog, Brown & Root, Formerly A Halliburton Company, Agrees To Pay $579 Million To Settle Bribery Charges
Kellogg Brown & Root, formerly a wholly owned subsidiary of Halliburton Corporation and based in Houston, Texas, agreed yesterday to pay a $579 million fine to settle charges it had violated anti-bribery provisions of the Foreign Corrupt Practices Act. Prosecutors alleged that the company had spent $182 million to bribe government officials in Nigeria in order to win $6 billion in construction contracts over a ten year period. Halliburton will be responsible for paying all but $20 million of the fine since it owned the company during the time of the violations. Kellogg Brown & Root (KBR) was spun off by Halliburton in April 2007. KBR's former chairman, Albert "Jack" Stanley, plead guilty to FCPA violations last year.
Read the DOJ announcement here.