While the number of fines issued in 2024 has been low so far, the penalties have been heavy, reaching well into the millions. Find out why.
Each fine or settlement this year has been over the hundred million mark, which indicates the severity. By understanding the behaviour that drove these fines and settlements, your company can hopefully avoid the same fate!
Whilst companies face multi-million settlement penalties, the consequences for individuals can include jail time.
We track bribery fines and settlements continuously; find out more in our posts about the biggest bribery fines of 2020, 2021, 2022 and the latest bribery fines of 2023.
Gunvor S.A. (Gunvor), a Swiss commodities trading company, has pleaded guilty and will pay over $661 million to settle a U.S. Justice Department investigation into breaching the Foreign Corrupt Practices Act.
The company bribed Ecuadorean officials to secure business with Petroecuador, the state-owned oil company. Gunvor pleaded guilty to conspiracy charges, agreeing to pay a criminal penalty of $374.56 million and forfeit $287.14 million. Switzerland also resolved its probe, with Gunvor paying $98 million.
Gunvor's bribery scheme spanned nearly a decade, involving payments to intermediaries who bribed Ecuadorean officials, including a high-ranking Petroecuador official. These bribes secured advantageous contracts for Gunvor, bypassing competitive bidding and yielding over $384 million in profits.
The company cooperated with the investigation, earning credit for providing evidence and facilitating the process. The resolution highlights the global effort to combat corruption and holds both corporations and individuals accountable for bribery.
SAP, the German software company, has agreed to pay approximately $222 million to settle bribery investigations across seven countries. The U.S. Department of Justice (DoJ) announced that SAP entered a three-year deferred prosecution agreement to settle criminal charges of conspiring to bribe government officials in Indonesia and South Africa.
Additionally, SAP reached a civil settlement with the U.S. Securities and Exchange Commission regarding similar alleged bribery schemes in Azerbaijan, Ghana, Kenya, Malawi, and Tanzania, as well as Indonesia and South Africa.
"[The company] has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,"
- Jessica Aber, U.S. Attorney
The settlement includes a $118.8 million criminal fine and $103.4 million of forfeiture. SAP welcomed the settlements and stated it had severed ties with those responsible over five years ago. The company's compliance-related investigations in the United States and South Africa have concluded with these agreements.
The alleged bribery schemes occurred between 2013 and 2022 and involved falsifying SAP's books and records to make the bribes appear as legitimate business expenses. Notable instances include SAP South Africa funding government officials' trips to New York in 2015 to secure a contract with the city of Johannesburg and an SAP Indonesia executive allegedly discussing bribes with an intermediary.
The Justice Department credited SAP for enhancing its compliance measures, internal controls, and cooperation with the probe, which began after misconduct allegations surfaced in South African media in 2017.
Trafigura has pleaded guilty to charges of bribery in Brazil and agreed to pay $127 million in fines and forfeited profits. The charges relate to payments made between 2003 and 2014 to secure oil contracts with Petrobras, Brazil's state-controlled oil company.
Trafigura admitted to paying around $19.7 million in bribes, earning approximately $61 million in profits from the scheme. The bribery involved paying up to 20 cents per barrel of oil products and concealing these payments through shell companies.
The U.S. DoJ acknowledged Trafigura's cooperation and remedial measures but not voluntary disclosure. This is the first time Trafigura has admitted wrongdoing in connection to Brazil's Lava Jato (Car Wash) scandal.
The consequences for individuals guilty of bribery and corruption are severe, with penalties that could include time in prison.
The Serious Fraud Office (SFO) has brought charges against two former executives of Petrofac, Marwan Chedid and George Salibi, for bribery. According to the SFO, they are accused of offering and paying agents over $30 million to secure contracts worth approximately $3.3 billion for Petrofac between 2012 and 2018.
The executives, previously based in the United Arab Emirates, are scheduled to appear at London's Westminster Magistrates' Court to face the charges.
Individuals can also draw important compliance lessons from bribery fines, whether they're employees, executives, or stakeholders within an organisation.
We have created a comprehensive bribery & corruption roadmap to help you navigate the compliance landscape, supported by several financial crime prevention courses in our Compliance Essentials Library.
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