GE to pay $23.5-mn to settle Iraq bribery charges
28 Jul 2010
Diversified US giant General Electric (GE) yesterday agreed to pay $23.5 million to settle the US Securities and Exchange Commission (SEC) allegations that it bribed former Iraqi officials to win contracts.
The SEC had alleged that two GE subsidiaries, and two other subsidiaries of public companies that have since been acquired by GE, made illegal kickback payments in the form of cash, computer equipment, medical supplies, and services to the Iraqi Health Ministry or the Iraqi Oil Ministry in order to win contracts to supply medical equipment and water purification equipment under the UN Oil for Food Program between 2000 and 2003.
According to the SEC's complaint, filed in the US District Court for the District of Columbia, the kickback scheme occurred from approximately 2000 to 2003.
GE subsidiaries Marquette-Hellige and OEC-Medical Systems (Europa) AG made approximately $2.04 million in kickback payments to the Iraqi government under the Oil for Food Program.
Ionics Italba S.r.L and Nycomed Imaging AS, both previous subsidiaries of public companies but now acquired by GE Healthcare Ltd. and GE Ionics respectively, made approximately $1.55 million in cash kickback payments.
The SEC alleges that Germany-based Marquette paid or agreed to pay illegal kickbacks in the form of computer equipment, medical supplies, and services on three contracts worth $8.8 million.
