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United States v. Textron, Inc.

 
:
Textron -- Textron, Inc.
:
DOJ Criminal
:
August 23, 2007
:
United States v. Textron, Inc.
:
In this Oil-for-Food case, the company's internal investigation uncovered improper payments in various foreign jurisdictions. Although technically denominmated as a non-prosecution agreement, the agreement includes the key characteristics of a deferred-prosecution agreement, namely, admissions of culpable conduct and the ability for future prosecution. Significantly, however, the improper payments related only to the actions of foreign subsidiaries outside of the United States, and not the parent company.
:
Manufacturing/Engineering
:
Bangladesh, Egypt, India, Indonesia, Iraq, United Arab Emirates
:
2000; 2001; 2002; 2003
:
The Iraqi government; officials of government-owned companies in Indonesia, Bangladesh, India, Egypt, and UAE.
:
In April 1995, the U.N. adopted Security Council Resolution 986 which permitted Iraq to sell its oil and to use proceeds from those sales to purchase humanitarian supplies such as food for the Iraqi people ("U.N. Oil-for-Food Program" or "OFF"). In an extensive scheme, the Iraqi government received illicit payments in the form of surcharges from oil purchasers and kickbacks, often termed "after sales service fees," from humanitarian goods suppliers. The kickback payments were masked by inflating the contract price, usually by 10% of the contract value.

Employees and agents of French subsidiaries of Textron Inc., a Delaware corporation based in Providence, R.I., made improper payments, totaling $600,000, to the Iraqi government in connection with oil-for-food contracts worth $1,936,936.

In addition, the same subsidiaries made payments to foreign officials in other countries of approximately $114,995.20 to obtain contracts to provide industrial pumps, gears, and other equipment.
:
Anti-bribery (Domestic Concern), Books and records (Issuer), Internal controls (Issuer)
:
Non-prosecution Agreement
:
1,150,000
:
0
:
Issuer
:
U.S.
:
Contract Procurement/Retention
:
1,936,936
:
Wire/check
:
Direct, Sales Agent/Consultant
:
714,995
:
No