Building a world of
resilient communities.

MAIN LIST

 

Halliburton faces probe by US regulators

Houston - US regulators had formalised an investigation of whether a joint venture including Halliburton, the world's biggest oilfield contractor, violated anti-bribery legislation to win orders for work on a Nigerian gas plant, the company said at the weekend.

The Securities and Exchange Commission (SEC) and the justice department had asked Halliburton for information related to joint venture TSKJ, the company said.

Regulators, who previously requested a report from the company related to allegations against TSKJ, gain the power to subpoena individuals and documents by making an investigation formal.

The SEC probe centres on whether the venture, 25 percent owned by Halliburton, made $180 million (R1.16 billion) in illegal payments.

Halliburton, headed by US vice-president Dick Cheney from 1995 to 2000, already faced investigations concerning its accounting, Iraq contracts and business in Iran.

Alexandra Wrage, the president of Transparent Agents and Contracting Entities, a Washington group that has introduced standards for preventing bribery by companies doing business overseas, said that the company "will forever be associated with reputational problems in Iraq and Nigeria".

She added: "Companies have not only to be clean, but [be] perceived as clean by the public."

Investigators are trying to establish whether TSKJ violated the US Foreign Corrupt Practices Act while it was seeking orders to help build and expand a Nigerian plant that liquefies natural gas.

The act prohibits US companies and foreign companies with US stock listings from paying bribes for contracts.

Halliburton said in a January 23 public filing that the SEC and justice department were reviewing allegations of illegal payments by TSKJ.

Officials asked the company for a report on the matter, and Halliburton hired counsel to investigate, the company said in the filing.

The company said on Friday it was co-operating with the SEC and a French magistrate conducting a separate investigation.

Michael Urban, an analyst at Deutsche Bank Securities in New York, said: "This is certainly not something they needed. It's another piece of noise out there, and the more noise there is, the more it hurts the stock."

A Halliburton spokesperson Wendy Hall said that the company had never authorised any improper accounts or transfers and that it had not seen any documentation of such transactions.

"It is important to our company that our clients, suppliers and host countries know Halliburton's code of business conduct is expected to be followed in every country in which we operate," she said.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


Citizens Can Sue Fracking Companies for Earthquake Damage, Says Oklahoma Supreme Court

Oklahoma almost never used to have earthquakes. But in the last six years …

Peak Oil Notes - July 2

 A midweek update. Despite a rally on Tuesday, New York oil …

Asia depends on Middle East for 66 % of its oil imports

Of Asia’s total incremental oil imports since 2001, 4.5 mb/d (47%) …

Rural Colorado Leads the Charge for Energy Freedom

Last week the Western Slope Colorado witnessed a huge victory for energy …

“We are in danger of winning. But….”  

First in-depth radio interview on The Winning of the Carbon War, on Radio …

Renewable Energy Redoubles its Global Reach

A significant threshold has been crossed by renewable energy as analysts …

Peak Oil Review - June 29

A weekly review in including Oil and the Global Economy, The Middle East …