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In July 2004, U.S. and British subsidiaries of ABB Ltd., a Swiss equipment-maker, pleaded guilty to paying more than $1 million in illegal bribes to win oil contracts in Nigeria.

ABB Vetco Gray Inc. of Houston and ABB Vetco Gray U.K. Ltd. Of Aberdeen, Scotland, disclosed the suspicious payments to the government in 2003 and formally pleaded guilty in federal court in Houston, USA in July 2004. Each company agreed to pay a fine of $5.25 million.

The companies were accused of paying bribes in exchange for confidential bid information and favourable recommendations from Nigerian government agencies overseeing seven oil and gas construction contracts.

Each company was charged under the Foreign Corrupt Practices Act; the U.K. firm was charged under a section of the law added in 1998 that prohibits foreign companies from any act involving the bribe of a foreign official in the United States.

In a related civil case by the Securities and Exchange Commission, ABB agreed in a settlement to pay $5.9 million more in restitution and interest.

The parent company also agreed to pay a $10.5 million civil penalty, which was considered to be covered by the two subsidiaries' payments of fines of the same amount in the criminal proceeding.