Friday, September 3, 2010

Friday Roundup

The DOJ appears not interested in Anadarko's allegations and more disclosure news ... its all here in the Friday roundup.

DOJ Appears Not Interested in Anadarko's Allegations

The Jubilee field is located off the coast of Ghana.

Participants in the West Cape Three Points Block include: Kosmos Energy LLC; Anadarko Petroleum Corporation; Tullow Oil PLC; Ghana National Petroleum Corporation; E.O. Group Ltd.; and Sabre Oil and Gas Limited.

Anadarko (here) apparently reported Kosmos (here) to U.S. authorities for possible violations of the FCPA "in connection with securing licensing and exploration and production agreements."

Anadarko apparently made similar allegations against EO Group.

Apparently, the DOJ is not interested - according to this Bloomberg article by David Wethe and and Jason McClure.

The article, which cites to a May 12 letter from the DOJ to Kosmos and June 2 letter from the DOJ to EO Group, states that the DOJ does not intend to "take any enforcement action" or pursue charges against either company and that the DOJ closed its inquiry into the matter.

According to the article, "Ghana is pressing ahead with its own criminal inquiry into alleged corruption in the development of the field."

Disclosure News

From Orthofix International N.V.'s Form 8-K filed August 31 (see here):

"During a recent internal management review of Promeca S.A. DE C.V. (“Promeca”), one of its Mexican subsidiaries, the Company received allegations of improper payments, allegedly made by certain of Promeca’s local employees in Mexico, to employees of a Mexican governmental health care entity. The Company has engaged Hogan Lovells US LLP and Deloitte Financial Advisory Services LLP to conduct an internal investigation focusing on compliance with the Foreign Corrupt Practices Act (“FCPA”) and voluntarily contacted the U.S. Securities and Exchange Commission and the United States Department of Justice to advise both agencies that an internal investigation is underway. During 2009, Promeca accounted for approximately one percent of the Company’s consolidated net sales and consolidated total assets. The internal investigation is in its early stages and no conclusions can be drawn at this time as to its outcome; however, the FCPA and related statutes and regulations provide for potential criminal and civil sanctions in connection with FCPA violations, including criminal fines, civil penalties, and disgorgement of past profits."

From Diageo PLC's 2010 Preliminary Results Release, dated August 26th (see here)

"SEC investigation: As previously reported, Diageo Korea and several of its current and former employees have been subject to investigations by Korean authorities regarding various regulatory and control matters. Convictions for improper payments to a Korean customs official have been handed down against two former Diageo Korea employees, and a former and two current Diageo Korea employees have been convicted on various counts of tax evasion. Diageo had previously voluntarily reported the allegations relating to the convictions for improper payments to the US Department of Justice and the US Securities and Exchange Commission (SEC). The SEC has commenced an investigation into these and other matters, and Diageo is in the process of responding to the regulators‟ enquiries regarding activities in Korea, Thailand, India and elsewhere. Diageo‟s own internal investigation in Korea, Thailand, India and elsewhere remains ongoing. The US Foreign Corrupt Practices Act (FCPA) and related statutes and regulations provide for potential monetary penalties, criminal sanctions and may result in some cases in debarment from doing business with governmental entities in connection with FCPA violations. Diageo is unable to quantify meaningfully the possible loss or range of loss to which these matters may give rise."


A good Labor Day weekend to all.

1 comment:

  1. FCPA compliance continues to challenge western multinationals operating in emerging markets. Diageo is the first in a string of such cases. Your audience may be interested in our recent post entitled, Expect Costlier Penalties for Violating the FCPA