Samsung Heavy Industries (SHI), a Korean shipbuilding company, has confirmed that it has reached an agreement with the US Department of Justice to pay a $75 million fine as part of an agreement following a bribery scandal.
This comes after corruption was uncovered following an investigation into commission payments related to SHI and Pride International’s 2007 contract to build a DS-5 drillship for Brazilian petroleum company, Petrobras. Pride International is now part of offshore drilling company Valaris.
The investigation revealed approximately $20 million in irregular spending and payments, with portions of the money used for bribes to obtain a lucrative shipbuilding contract.
Commenting on the findings, SHI CEO, Joon Ou Nam, said the company had taken preventative measures to root out corruption at all levels, and avoid a situation like this in the future.
Nam said the company deeply regretted its involvement in the scandal, adding that it was “contrary to our values and ethical standards”.
He added that much of the wrongdoing happened over a decade ago, and that the individuals involved had since left the company.
“Over the past years we have taken extensive steps, at our own initiative, to strengthen our anti-corruption compliance programme to meet the highest standards of compliance and ethics.”
As part of the settlement, SHI must pay half of the fine to the US government within the first 10 days, with the other half to be paid to the Brazilian government in the next year. – Bjorn Vorster
