Samsung Heavy Industries to pay $75m in fines over bribery scheme – report

samsung-heavy

Samsung Heavy Industries Co., a major South Korean shipbuilder, has agreed to pay $75 million in penalties to avoid prosecution in the United States over its scheme to pay millions of dollars in bribes to Brazilian officials to win a contract, the US Department of Justice has said.

The company has admitted to paying $20 million in commission to a Brazilian intermediary between 2007 and 2013, knowing that some of that money would be used to bribe high-level executives at a Brazilian state-owned oil firm, Petrobras, to secure a lucrative shipbuilding contract, the department said in a release.

In a deferred prosecution agreement with the justice department signed Friday, the South Korean firm has committed to pay $75.48 million in fines, half of which will be paid to the US within 10 business days.

The remaining 50 percent will either be paid to Brazil or to the US if the payment is not made to Brazil by November next year, the department said.

Samsung Heavy has agreed to continue cooperation with the US authorities in any ongoing investigations relating to the case, including of individuals, and to report to the department on the implementation of its enhanced compliance program, it added.

The department said it took into consideration the company’s cooperation with the probe and taking of remedial measures in reaching the agreement.

Source: Yonhap

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