Honeywell charged by the SEC over alleged bribery schemes in Brazil and Algeria

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The Securities and Exchange Commission has charged Honeywell International Inc. HON, +1.71% for violations of the Foreign Corrupt Practices Act (FCPA) related to bribery schemes that allegedly took place in Brazil and Algeria. The conglomerate housing aerospace, materials, and other businesses has agreed to pay more than $81 million to settle the SEC’s charges. In Brazil Honeywell allegedly engaged in a bribery scheme involving intermediaries and employees of its U.S. subsidiary to obtain business from the Brazil state-owned entity Petrobras, according to the SEC. The SEC also charged that, in 2011, employees and agents of Honeywell’s Belgian subsidiary allegedly paid more than $75,000 in bribes to an Algerian government official to obtain and retain business with the Algerian state-owned entity Sonatrach. “For years, Honeywell neglected to implement sufficient internal accounting controls to mitigate against known corruption risks in countries like Brazil and Algeria,” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit, in a statement released on Monday. “This failure created an environment in which Honeywell employees and agents could and did facilitate bribes.” In a statement released on Monday Honeywell said it has agreed to resolutions with the U.S. Department of Justice, the SEC, and the Brazilian authorities to resolve previously disclosed anti-corruption investigations into the company’s historical operations in Brazil in relation to Petrobras and, with respect to the SEC resolution, also relating to historical conduct involving an intermediary, Unaoil. Honeywell said that the company will pay a total of $202.7 million in penalties, disgorgement, and prejudgment interest. “We are pleased to have this legacy matter behind us, as these events in no way reflect the current leadership, culture and values that Honeywell has come to establish over a decade since this activity occurred,” said Honeywell CEO Darius Adamczyk, in the statement. “We stand behind our recognized world-class ethics and compliance program and all Honeywell employees are expected to abide by all laws in the countries in which we operate and conduct themselves with the highest levels of integrity at all times.”

This article was originally published by Marketwatch.com. Read the original article here.

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