Muhammad Al-Maddah Okaz/ Saudi Gazette WASHINGTON — While Saudi Aramco is continuing its investigations to uncover allegations of its employees taking bribes from the US company Tyco Valves and Controls, Okaz/Saudi Gazette pursued possible involvement of American officials in the scam. A correspondent met with Peter Carl, Assistant Attorney General in Virginia. He confirmed that the US Justice Department and Tyco International and its subsidiaries, including Tyco Valves, agreed on an out-of-the-court settlement in the case. He said the core of the agreement was that the Department of Justice would not pursue criminal or non-criminal charges against the company or any of its subsidiaries in the US based on the Foreign Corrupt Practices Act (FCPA). The act was enacted to make unlawful certain classes of individuals or entities making payments to foreign officials to obtain or retain business contracts. Under the settlement signed with the Department of Justice and the US Securities and Exchange Commission (SEC), the company will pay fines in excess of SR26 million. Bert Ludwig, spokesman for Tyco International in New Jersey, said his company immediately responded when it discovered, while revising the company's internal audit books, some errors committed by its personnel as regards to the law defining the foreign corrupt practices. The company informed the concerned US authorities, including the Department of Justice and the SEC, about these mistakes, he said. Replying to a question, Ludwig denied reports that the FBI had uncovered the violations. He reiterated that Tyco had voluntarily submitted confessions to the Department of Justice and that the FBI did not intervene in the case. However, Ludwig failed to give a specific date when his company conveyed the information to the authorities. “This took place several years ago immediately upon the completion of the internal auditing and uncovering of the violations,” he said. He also refused to give details about the involvement of his company with other Arab countries. He denied any knowledge of Saudi Aramco cutting its relations with Tyco. International lawyer Hani Zuhdi told Okaz/Saudi Gazette that the anti-bribery provisions of the FCPA prohibit issuers, domestic concerns and any individual from practicing commerce corruptly, with an offer or payment of any value for the purpose of influencing anyone in the company. He said this law deters businesses from violating the FCPA and shows why the US companies are very keen on not offering any kind of benefits to foreigners even at the risk of financial losses. Referring to Tyco case, Zuhdi said the company admitted its mistake immediately after discovering bribe payments by its officials and it agreed to pay SR26 million to settle the case. This is the quickest way for companies caught making mistakes to close pending lawsuits. He said Saudi Aramco would not be able to sue Tyco in the US because of the settlement and the procedures it had followed. “But this does not prevent Aramco from filing a lawsuit against Tyco in the Saudi courts of law.” About the reported merger of the Tyco subsidiary with Pentair, Zuhdi said when a company is accused of malpractice its reputation is at stake. “Thus in most cases such companies assume a new name to maintain respectability.”
