KBR CEO Comments on DOJ and SEC Settlement Agreementsin Foreign Corrupt Practices Act Investigation
February 11 2009 - 2:44PM
Business Wire
KBR (NYSE:KBR) Chairman, President and CEO William P. Utt today
commented on the Department of Justice (DOJ) and Securities
Exchange Commission (SEC) settlements related to KBR�s violations
under the Foreign Corrupt Practices Act (FCPA) occurring between
1994 and 2004.
Under the terms of the settlement announced earlier today, KBR
will make payments totaling $20 million over the next eight
quarters to the DOJ. The information contained in the DOJ and SEC
settlements note aggregate financial penalties totaling $579
million. The remainder of the penalties will be paid by Halliburton
pursuant to indemnities under the 2006 Master Separation Agreement
between KBR and Halliburton.
KBR has also agreed with DOJ and SEC to retain a compliance
monitor to review KBR�s continued compliance with anti-corruption
laws.
NOTE: KBR will host a conference call today, Wednesday,
February 11, 2009, to discuss the settlement. The call will begin
at 4:45 PM Central Time (5:45 PM Eastern Time). Please visit the
website to listen to the call live via webcast. In addition, you
may participate in the call by telephone at (913) 312-0962. A
passcode is not required.�Attendees should log-in to the webcast or
dial-in approximately 15 minutes prior to the call�s start time. A
replay of the conference call will be available on the website for
seven days following the call. Also, a replay may be accessed by
telephone at (888) 203-1112, passcode 3874334.
Statement from William P. Utt, KBR Chairman, President and
CEO:
�Today�s settlements announced by the Department of Justice
(DOJ) and the Securities Exchange Commission (SEC) close both a
regrettable and unfortunate chapter in KBR�s rich and storied
history. KBR has fully cooperated with the U.S. Government
throughout the extensive investigations over the last five
years.
These settlements resolve criminal and civil liabilities in the
United States that KBR has faced prior to becoming an independent
public company in April 2007. It is important to point out that all
of the alleged misconduct occurred prior to June of 2004 and
involved individuals who are former management, employees, and
agents of KBR subsidiaries and predecessor entities. None of the
allegations involved current KBR management and/or employees.
As we have stated many times in the past, and particularly in
light of the past actions of KBR�s former management and their
advisors giving rise to today�s settlements, KBR in no way condones
or tolerates illegal or unethical behavior. Conducting our business
with the utmost integrity is at the core of the work we perform
each day. KBR maintains a formal Code of Business Conduct and each
employee is expected to adhere to KBR�s Code of Business Conduct
which exemplifies the company�s unwavering commitment to honesty,
ethics and integrity.
While today�s actions are unfortunate and regrettable, I am
pleased to finally conclude this very difficult but necessary
settlement. I remain confident as KBR looks to its future that our
more than 60,000 employees will continue to adhere to our Code of
Business Conduct and embody the company�s key focus areas of
transparency, accountability, financial responsibility and
discipline. It is through this continued commitment to our Code of
Business Conduct and core values that I remain optimistic about
KBR�s path forward, future growth, and success as one of the
world�s leading engineering, construction and services
companies.�
KBR is a global engineering, construction and services company
supporting the energy, petrochemicals, government services and
civil infrastructure sectors. The company offers a wide range of
services through its Downstream, Government and Infrastructure,
Services, Technology, Upstream and Ventures business segments. For
more information, visit www.kbr.com.
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