Petrofac Limited guilty pleas and sentence for failing to prevent bribery (2021)
- Plea date
- Pleas and sentence were adjourned from 27 September 2021 to Friday 1 October 2021 1. The SFO release of 4 October 2021 says Petrofac pleaded guilty "On Friday" 2
- Agency
- Serious Fraud Office 2
- Court
- Southwark Crown Court, after a first hearing at Westminster Magistrates' Court 1
- Offence
- Seven counts of failing to prevent bribery, contrary to section 7 of the Bribery Act 2010 1,4 5
- Period
- 2011 to 2017, according to the SFO 1,2. The company statement refers to projects awarded between 2012 and 2015 4
- Total amount
- About £77 million: confiscation £22,836,985, a fine of £47,197,640 and SFO costs of £7 million 2
- Admission
- Guilty pleas. The SFO says Petrofac "admitted" that £32 million in bribes were paid 2
- Status
- The SFO said its investigation of the corporate entity and its subsidiaries was concluded 2
Charge and pleas
The SFO said on 24 September 2021 that Petrofac Limited had been charged with seven counts of failing to prevent bribery covering 2011 to 2017 1. It said the case was heard first at Westminster Magistrates' Court and sent to Southwark Crown Court 1. It said Petrofac had reported its intention to plead guilty under a plea agreement with the SFO, and that the court adjourned pleas and sentencing from 27 September 2021 to 1 October 2021 1.
The SFO said on 4 October 2021 that Petrofac pleaded guilty to all seven counts 2. A guilty plea is a criminal conviction. The SFO release makes no mention of a deferred prosecution agreement 2.
Conduct described by the SFO
The SFO said the offences concerned former senior executives of the Petrofac Group who used agents to bribe officials to win oil contracts in Iraq, Saudi Arabia and the UAE 2. It said Petrofac admitted that £32 million (US$44 million) in bribes were paid to win contracts worth about £2.6 billion (US$3.5 billion) 2.
Company statement: Petrofac said the offences concerned its failure to prevent former Petrofac Group employees from offering or making payments to agents, and related to projects awarded between 2012 and 2015 4. The SFO gives the period of the offences as 2011 to 2017 1,2.
Section 7 of the Bribery Act 2010 makes it an offence for a commercial organisation to fail to prevent an associated person from bribing to obtain or retain business for it. The organisation has a defence if it proves it had adequate procedures to prevent such conduct 5.
The sentence
Company statement: Petrofac said the confiscation was payable by 3 January 2022 and the fine and costs by 14 February 2022, and put the total at about US$104.6 million 4. The SFO release does not name the sentencing judge 2.
Individual convictions
The SFO described the company pleas as the third set of convictions in its four-year investigation into the Petrofac Group 2. It said former Head of Sales David Lufkin pleaded guilty to 11 counts of bribery in 2019 and three counts in 2021, a total of 14 2. It said he was sentenced to two years' custody suspended for 18 months, and that he cooperated with the SFO 2.
On 15 December 2021 the SFO said it obtained a confiscation order of more than £140,000 against Lufkin at Southwark Crown Court 3. It said his offences concerned payments between 2011 and 2018 to win contracts in Iraq, Saudi Arabia and the UAE 3. The SFO said in October 2021 that its investigation into individual suspects was continuing 2.
Statements
SFO Director Lisa Osofsky said: "The SFO welcomes Petrofac Limited taking responsibility for its conduct" 2.
Company statement: Chairman René Médori said the outcome "draws a line under a regrettable period of our history" and that "The past behaviour uncovered by the SFO would not be possible today" 4.
Common questions
Did Petrofac plead guilty?
Yes. Petrofac Limited pleaded guilty to seven counts of failing to prevent bribery 2.
Was this a deferred prosecution agreement?
No. It was a guilty plea and sentence 2. The SFO said Petrofac reported its intention to plead guilty under a plea agreement with the SFO 1.
How much did Petrofac pay?
About £77 million: £22,836,985 confiscation, a £47,197,640 fine and £7 million costs 2.
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Sources
- Serious Fraud Office: SFO statement on Petrofac charged with seven separate offences between 2011 and 2017 (24 September 2021)
- Serious Fraud Office: Serious Fraud Office secures third set of Petrofac bribery convictions (4 October 2021)
- Serious Fraud Office: SFO secures confiscation against former Petrofac executive (15 December 2021)
- Petrofac, company statement: Statement on final outcome of SFO investigation (4 October 2021)
- legislation.gov.uk: Bribery Act 2010, section 7, Failure of commercial organisations to prevent bribery
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