UK firm to pay £6.6 million in corruption case

The first firm to be prosecuted in Britain for overseas corruption and breaching United Nations sanctions is to pay £6.6 million (Dh38.75m) in fines and penalties, said the UK's Serious Fraud Office (SFO).

Bridge manufacturer Mabey & Johnson was convicted of two corruption charges relating to contracts in Jamaica and Ghana between 1993 and 2001.

It also pleaded guilty to applying for contracts under the Iraq oil-for-food programme in 2001-02 in breach of UN sanctions.

London's Southwark Crown Court was told the company paid out £1m in sweeteners it thought helped it to win contracts worth £60m, reported the Press Association.

A subsequent investigation found it had also paid bribes to individuals in Madagascar, Angola, Mozambique and Bangladesh. The penalties paid by the firm, which is now under new management, include fines of £3.5m, a confiscation order of £1.1m, total reparations of just over £1.4m to Ghana, Iraq and Jamaica, as well as costs.

SFO Director Richard Alderman called the ruling "a landmark outcome".

"What our company did in the past is a matter of deep regret," said Peter Lloyd, Mabey & Johnson, Managing Director. "We have now made a fresh start, having wiped the slate clean of these offences. These costs will hurt the company."

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.