Tenaris SA, a worldwide steel pipe maker, has agreed to pay USD 78.1 million to settle US investigations into allegations that it paid bribes to gain business from Brazil's state-owned oil major Petrobras.
To conclude a civil inquiry by the US Securities and Exchange Commission, the Luxembourg-based corporation will pay a USD 25 million civil punishment, plus USD 53.1 million in disgorgement and interest, without admitting or denying wrongdoing.
According to Tenaris, the US Department of Justice has terminated a related investigation without taking any action. Petrobras was not held accountable.
Tenaris was charged by the SEC of violating the Foreign Corrupt Practices Act via a conspiracy involving agents and employees of its Brazilian subsidiary Confab Industrial.
According to the Securities and Exchange Commission, Confab received over USD 1 billion in contracts from Petrobras between 2008 and 2013, including USD 10.4 million in bribes paid on its behalf to a Brazilian government official, who spent some of the money on real estate and artwork.
Despite "known corruption concerns" in Brazil and agreements with the SEC and Justice Department in 2011 to avoid prosecution over suspected bribery in Uzbekistan, Tenaris lacked adequate procedures to identify bribery, according to the SEC.
Tenaris will report on its anti-corruption efforts to the SEC on a quarterly basis for the next two years as part of the settlement.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.
