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Baker Hughes

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Baker Hughes is a Texas-based oil and gas industry services company that operates in 90 countries around the world. [1]

Settling U.S. Bribery Investigations

In April 2007 Baker Hughes announced that it had paid $44.1 million to settle investigations by the United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) into the company's operations in Angola, Kazakhstan and Nigeria. [2] In its statement the company announced that:

  • a company subsidiary "pled guilty to violations of the Foreign Corrupt Practices Act (FCPA) as a result of payments made between 2001 and 2003 to a commercial agent retained in 2000 in connection with a project in Kazakhstan";
  • "The company agreed with the SEC to the entry of a Consent Judgment charging violations of the anti-bribery provisions of the FCPA arising from the engagement of agents to obtain contracts in Kazakhstan. The Consent Judgment also charges violations of the books-and-records and internal-controls provisions, and the terms of a September 12, 2001 cease-and-desist order, arising from these and other activities in Kazakhstan, Angola, Nigeria, Indonesia, Russia, and Uzbekistan." [3]

Radio Free Europe reported that a quarter of the fine related to Baker Hughes' activities "developing the huge Karachaganak natural-gas field in northern Kazakhstan" and the the court was told the company had "paid $4.1 million in bribes from 2001-03 to an intermediary, who in turn transferred money to a high-level executive of KazakhOil, the state oil company at the time. Additionally, the complaint says, in the period of 1998-99, kickbacks of more than $1 million were paid to a KazTransOil executive." [4]

Contact Details

Web:http://www.bakerhughesdirect.com

Other SourceWatch Resources

References

  1. "About Baker Hughes", accessed May 2007.
  2. "Baker Hughes Settles Previously Disclosed FCPA Investigations", Media Release, April 26, 2007.
  3. "Baker Hughes Settles Previously Disclosed FCPA Investigations", Media Release, April 26, 2007.
  4. Nikola Krastev, "Kazakhstan: U.S. Firm Pleads Guilty In Bribery Case", Radio Free Europe, April 30, 2007.
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