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Baker Hughes Settles with Whistleblower


In October 2003, US oil-field services company Baker Hughes said it settled a lawsuit by a former worker whose accusations that bribes were paid to secure a lucrative Nigerian contract are under federal investigation.

Alan Ferguson sued in March 2002, saying he was fired from the Houston company after he complained that a kickback scheme was used to secure a Nigerian oil service contract worth $70 million to $110 million, violating the Foreign Corrupt Practices Act, which prohibits improper payments to secure business in a foreign country.

In August 2003, it was reported that the US Securities and Exchange Commission (SEC) broadened its investigation into Baker Hughes' business practices in Nigeria to include Angola and Kazakhstan. The US oilfield services giant says it will cooperate fully, and will conduct its own investigations, too.

The probe stems from a March 2002 complaint by former employee Alan Ferguson, who claimed he was fired for not going along with a bribery scheme to win a contract with Shell Nigeria in 1999 (EC Apr.5'02,p10). Ferguson sued Baker Hughes, seeking back pay and damages.

In 2001, Baker Hughes settled with the SEC in connection with allegations it authorized a $75,000 bribe to an Indonesian tax official in 1999 and improper payments of $15,000 and $10,000 to agents in India and Brazil. It did not admit or deny the charges.


References
Mondaq  [Publication date: 7/4/2009] 'United Kingdom: Investigating And Prosecuting Fraud & Corruption In The International Business Environment - Part 2 Related Information' by Monty Raphael
   http://www.mondaq.com/article.asp?article_id=77406&lk=1
[ Date URL accessed: 3/5/2009 ]

The Metropolitan Corporate Counsel  [Publication date: 2/6/2008] 'Attacks From Abroad' by Jeffrey Harfenist
   http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=June&artYear=
   2008&EntryNo=8349

[ Date URL accessed: 3/6/2008 ]

The Metorpolitan Corporate Counsel  [Publication date: 1/5/2008] 'Uncovering Foreign Corruption Risk Before It Covers You' by Jeffrey Harfenist, Chris Lozier
   http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=May&artYear=2
   008&EntryNo=8239

[ Date URL accessed: 5/5/2008 ]

Financial Week  [Publication date: 3/3/2008] 'U.S. targeting execs in bribe probes' by Andrew Osterland
   http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080303/REG/931152399
[ Date URL accessed: 4/3/2008 ]

International Herald Tribune  [Publication date: 19/12/2007] 'U.S. expands enforcement of anti-bribery laws at home and abroad' by Robert Schmidt
   http://www.iht.com/articles/2007/12/19/business/bribe.php
[ Date URL accessed: 20/12/2007 ]

San Francisco Chronicle  [Publication date: 2/12/2007] 'Washington attacking corporate corruption elsewhere in the world' by Nelson D. Schwartz, Lowell Bergman
   http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/12/02/MNM9TIBA7.DTL
[ Date URL accessed: 3/12/2007 ]

New York Times  [Publication date: 25/11/2007] 'Payload: Taking Aim at Corporate Bribery' by NELSON D. SCHWARTZ, LOWELL BERGMAN
   http://www.nytimes.com/2007/11/25/business/25bae.html?_r=1&ref=business&pagewan
   ted=all

[ Date URL accessed: 26/11/2007 ]

allAfrica.com  [Publication date: 24/11/2007] 'Siemens Bribery Scandal - How Far Can EFC, ICPC Go?' by Hussain J. Ibrahim
   http://allafrica.com/stories/200711240045.html
[ Date URL accessed: 26/11/2007 ]

Law.com  [Publication date: 16/7/2007] 'Why Are More Companies Self-Reporting Overseas Bribes? Companies are disclosing overseas bribes in record numbers. Is that always necessary?' by Sue Reisinger
   http://www.law.com/jsp/ihc/PubArticleIHC.jsp?id=1184231196297
[ Date URL accessed: 24/7/2007 ]

Radio Free Europe  [Publication date: 30/4/2007] 'Kazakhstan: U.S. Firm Pleads Guilty In Bribery Case'
   http://www.rferl.org/featuresarticle/2007/04/1324D414-CD2C-49FC-8535-04D7EC99D1
   61.html

[ Date URL accessed: 9/5/2007 ]

The International Herald Tribune  [Publication date: 18/5/2005] 'Greasing the wheels of business' by Paul Burnham Finney
   http://www.iht.com/articles/2005/05/17/business/bribes.php
[ Date URL accessed: 25/5/2005 ]

Bloomberg.com  [Publication date: 11/6/2004] 'Halliburton Venture in Nigeria Investigated by SEC'
   http://quote.bloomberg.com/apps/news?pid=10000087&sid=awH7YVQ6duWg&refer=top_wo
   rld_news

[ Date URL accessed: 11/8/2004 ]

International Oil Daily  [Publication date: 8/10/2003] 'Baker Hughes Settles Suit'
[ Date URL accessed: 5/5/2004 ]

Energy Compass  [Publication date: 14/8/2003] 'US authorities broaden probe into Baker Hughes'
[ Date URL accessed: 3/7/2004 ]

The Economist  [Publication date: 2/3/2002] 'The short arm of the law - Bribery and business'
   http://www.globalpolicy.org/nations/corrupt/2002/0228short.htm
[ Date URL accessed: 25/4/2005 ]

'Front Line World: the Business of Bribes'
   http://www.pbs.org/frontlineworld/stories/bribe/
[ Date URL accessed: 3/5/2009 ]


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