MOSCOW (MRC) -- The Securities and Exchange Commission (SEC) has charged France-based oil and gas company Total S.A. with violating the Foreign Corrupt Practices Act (FCPA) by paying USD60 million in bribes to intermediaries of an Iranian government official who then exercised his influence to help the company obtain valuable contracts to develop significant oil and gas fields in Iran, according to The Wall Street Journal.
The SEC alleges that Total made more than USD150 million in profits through the bribery scheme. Total attempted to cover up the true nature of the illegal payments by entering into sham consulting agreements with intermediaries of the Iranian official and mischaracterizing the bribes in its books and records as legitimate "business development expenses" related to the consulting agreements. Total had inadequate systems to properly review the consulting agreements and lacked sufficient internal controls to comply with federal laws prohibiting bribery.
Total, whose securities are publicly traded on the New York Stock Exchange, agreed to pay more than USD398 million to settle the SEC's charges and a parallel criminal matter announced recently by the U.S. Department of Justice.
The SEC's order requires Total to pay disgorgement of USD153 million in illicit profits and retain an independent compliance consultant to review and report on Total's compliance with the FCPA.
In the parallel criminal proceedings, Total agreed to pay a USD245.2 million penalty as part of a deferred prosecution agreement. Total also was charged today by the prosecutor of Paris (Francois Molins, Procureur de la Republique) of the Tribunal de Grande Instance de Paris for violations of French laws.
We remind that, as MRC reported earlier, French oil giant Total SA has recently approved a EUR1 billion (USD1.29 billion) project to modernize its Antwerp refining and petrochemical platform. As part of the modernization process, the company will shut down its oldest cracker and polyethylene lines at Antwerp platform.
Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large-scale chemicals manufacturer.
MRC