Balfour Beatty's US Subsidiary to Pay $65.4 Million in Resolution With Justice Department

By Sabela Ojea

Balfour Beatty PLC said Thursday that its subsidiary Balfour Beatty Communities has reached a resolution with the U.S. Department of Justice on charges of improperly claiming performance incentive fees between 2013 and 2019.

The infrastructure group said its U.S. subsidiary will pay a total resolution amount of $65.4 million, which comprises around $33.6 million in penalties and $31.8 million in restitution in relation to maintenance work at certain U.S. military housing installations.

The London-listed company's U.S. subsidiary has pleaded guilty to one count of fraud and has agreed to the appointment of an independent compliance monitor for a three-year period, it said, noting that it cooperated fully with the Department of Justice in its investigation.

The resolution ends the investigation, the company said.

"In 2019, the company undertook an in-depth review of operations at Communities and, as a result, a series of changes have been made to prevent this type of misconduct from occurring in the future," Balfour Beatty said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

December 23, 2021 02:47 ET (07:47 GMT)

Balfour Beatty (PK) (USOTC:BAFYY)
Historical Stock Chart
From May 2024 to Jun 2024