Halliburton has announced the resolution of the previously disclosed investigations regarding the Company’s operations in Angola and Iraq.
These investigations began after the Company received an anonymous allegation in December 2010 of possible violations of the Halliburton Code of Business Conduct and the Foreign Corrupt Practices Act (FCPA), principally through the use of a vendor to satisfy Angolan local content requirements.
Halliburton promptly reported the allegation to the Department of Justice (DOJ), conducted a thorough internal investigation and cooperated with investigations by the Securities and Exchange Commission (SEC) and the DOJ. Over the intervening years, Halliburton also continuously enhanced its global ethics and compliance program.
To settle the SEC investigation regarding the alleged conduct in Angola and Iraq, Halliburton, without admitting or denying any of the factual findings, has consented to the entry of an administrative order stating that in connection with its use of a local content provider in Angola, the Company violated the books and records and internal controls provisions of the FCPA. The Company agreed to a total payment of $29.2 million for disgorgement, prejudgment interest and a civil penalty, and to engage an independent consultant to review aspects of its compliance program in Africa.
Separately, the DOJ has advised the Company that it has closed its investigation and will not be taking any action.