Halliburton Company Rotten Score Breakdown

Halliburton Company and its former subsidiary KBR Inc. reached a civil resolution with the U.S. Securities and Exchange Commission in February 2009 arising from a major foreign-bribery scheme connected with liquefied natural gas construction contracts in Nigeria. The underlying scheme involved a KBR-led joint venture and corrupt payments to Nigerian government officials intended to obtain and retain engineering, procurement and construction contracts. The contracts were worth more than $6 billion. Separately, KBR subsidiary Kellogg Brown & Root LLC pleaded guilty to federal criminal FCPA charges and agreed to pay a $402 million criminal fine. The SEC civil action directly addressed Halliburton as KBR's former parent company. According to the Justice Department's description of the coordinated resolution, the SEC charged KBR with violating the Foreign Corrupt Practices Act's anti-bribery provisions. The SEC also charged KBR and Halliburton with books-and-records and internal-controls violations related to the bribery. KBR Inc. and Halliburton jointly agreed to pay $177 million in disgorgement of profits relating to those violations. The Justice Department described the underlying matter as a long-running corruption investigation involving the award of approximately $6 billion in Nigerian construction contracts. This Rotten Company record distinguishes Halliburton's SEC resolution from KBR's separate $402 million criminal guilty plea and does not characterize Halliburton itself as having entered that guilty plea. Primary source: U.S. Department of Justice — Kellogg Brown & Root LLC Pleads Guilty to Foreign Bribery Charges and Agrees to Pay $402 Million Criminal Fine: https://www.justice.gov/archives/opa/pr/kellogg-brown-root-llc-pleads-guilty-foreign-bribery-charges-and-agrees-pay-402-million