{"id":14621,"date":"2021-07-01T10:15:07","date_gmt":"2021-07-01T10:15:07","guid":{"rendered":"https:\/\/crigroup.com\/?p=14621"},"modified":"2024-01-23T15:11:09","modified_gmt":"2024-01-23T15:11:09","slug":"john-wood-group-pay-177-million-bribery-charges","status":"publish","type":"post","link":"https:\/\/crigroup.com\/ar\/john-wood-group-pay-177-million-bribery-charges\/","title":{"rendered":"John Wood Group to Pay $177 Million to Settle Bribery Charges Inherited Through its Merger"},"content":{"rendered":"

John Wood Group Bribery Probe Trace Back to its Merger with Amec Foster Wheeler Plc.<\/strong><\/h2>\r\n\r\n\r\n
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John Wood Group Plc<\/a>\u00a0has agreed to pay $177 million to settle the UK led bribery and corruption probe into a British engineering firm it acquired in 2017. The settlement is part of a so-called deferred prosecution agreement with the Serious Fraud Office and the US Department of Justice concerning Amec Foster Wheeler Plc.
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\r\nThe UK agreement is still subject to court approval. As part of the deal, the company can avoid prosecution for three years if it cooperates in the continuing bribery probe. Wood Group\u2019s payment is one of the largest ever obtained in the UK led bribery and corruption case. The biggest was a $1.2 billion settlement with\u00a0Airbus SE\u00a0that also involved the US and French authorities.
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\r\nIn 2017, the SFO opened an investigation into Amec\u2019s use of third parties to gain contracts, just weeks after Shareholders approved wood Group\u2019s proposed acquisition. The DOJ said the probe concerned a\u00a0scheme\u00a0to pay bribes to officials in Brazil for a $190 million contract to design a gas-to-chemicals complex.
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\r\nAs part of the deal announced, at least $10.1 million will settle charges brought by the US Securities and Exchange Commission. The DOJ said it would get about $18.4 million to resolve its criminal charges in the Brazil bribery probe. Amounts to be paid to the UK and Brazil are yet to be made public.
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\r\nWood Group announced that it was close to a settlement. It originally said it expected a deal for $186 million, with about $60 million paid in the first half of 2021 and the rest over three years. The company also agreed to pay $10 million to Scottish authorities earlier this year to settle the case.
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\r\n\u201cThe investigations brought to light unacceptable, albeit historical,\u00a0behaviour\u00a0that I condemn in the strongest terms,\u201d Wood Group Chief Executive Officer Robin Watson said in a statement. \u201cAlthough we inherited these issues through acquisition, we took full responsibility in addressing them, as any responsible business would.\u201d
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\r\nThe company has \u201ccooperated fully with the authorities\u201d and \u201ctaken steps to improve further our ethics and compliance program from an already strong foundation,\u201d Watson said. \u201cI\u2019m pleased that, subject to final court approval in the UK, we have been able to resolve these issues and can now look to the future.\u201d
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\r\nThe agreement comes amid criticism of the SFO and its inability to prosecute individuals after securing settlements with companies. Earlier this year, the SFO dropped its probe into former Airbus directors and was dealt a humiliating setback after its trial against two former\u00a0Serco Group Plc\u00a0directors fell apart because it failed to disclose evidence.
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\r\nIn May 2021, the SFO opened one of its\u00a0biggest investigations\u00a0into suspected fraud and money laundering concerning\u00a0GFG Alliance<\/a>\u00a0and its financing agreements with Greensill Capital. It was after months of intense pressure from lawmakers to investigate Sanjeev Gupta\u2019s empire.
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\r\nJohn Wood Group bribery probe.
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\r\nSource: Financial Crimes News<\/a>
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The Importance of Due Diligence in Merger and Acquisition to Avoid a Similar Incident Happened like in John Wood Group.<\/strong><\/h3>\r\n

Due diligence is understood as the reasonable steps taken to satisfy legal requirements in the conduct of business relations. That allows you to reduce risks \u2013 including risks arising from the FCPA (Foreign Corrupt Practices Act) and the UKBA (UK Bribery Act), to make informed decisions and to pursue takeovers or mergers with more confidence.<\/p>\r\n

Unlike other kinds of control (audits, market analysis, etc.), it must be completely independent and rely as little on information provided by the researched subject. The other important difference lies in the methodology: commercial or financial due diligence analyses available information, investigative type provides reliable and pertinent, but raw, information.<\/p>\r\n

Due diligence on potential business partners when adding a new vendor or hiring a new employee is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity due diligence investigations provides your business with the critical information it needs to make sound decisions regarding mergers and acquisitions, strategic partnerships, and the selection of vendors, suppliers, and employees.<\/p>\r\n

It will ensure that working with an, i.e. potential trade partner will ultimately achieve your organisation\u2019s strategic and financial goals. CRI Group investigators employ a proven, multi-faceted research approach that involves a global array of databases, courts and public record searches, local contacts, industry and media resources, and in-depth web-based research. Our resources include:<\/p>\r\n\r\n\r\n

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