SBM Offshore this week reached a $240 million settlement with the Dutch Public Prosecutor’s Office over improper payments to sales agents and foreign government officials. The U.S. Department of Justice closed its inquiry into the matter without prosecuting the company.

In a statement, the Dutch Public Prosecutor’s Office said it reached an out-of-court settlement with SBM Offshore because it self-initiated an internal investigation, self-reported the facts to authorities and fully cooperated. It also credited SBM Offshore for taking significant remedial measures to improve its anti-corruption compliance policies and procedures and related internal financial controls.

The resulting settlement consists of a $40 million fine and $200 million in disgorgement. According to the Dutch Public Prosecutor’s Office, SBM Offshore paid approximately $200 million in commissions to foreign sales agents for services from 2007 through 2011. The largest part of these commissions, totaling $180.6 million, related to Equatorial Guinea, Angola, and Brazil.

Remedial Measures

Under the direction of a new management board established in 2012, SBM Offshore appointed Sietze Hepkema to the newly-created position of chief governance and compliance officer, and further appointed a “seasoned compliance professional” to the newly-created position of compliance director, SBM Offshore stated.

In addition to improving its anti-corruption policies and procedures and internal controls, SBM Offshore said it also enhanced its internal mechanisms to report potential wrongdoing, and launch new training for employees in compliance-sensitive positions.

Other remedial measures the company took include:

No longer using sales agents in those countries where the company itself has a substantial presence;

Enhancing compliance procedures related to the retention of sales agents, other intermediaries, and joint venture partners; and

Taking disciplinary actions against employees who were involved in, or had knowledge of, possible improper payments, including terminating employment agreements.

“SBM welcomes the conclusion of all discussions with the Dutch and U.S. authorities. We have been open, transparent and accountable throughout this difficult process, which has addressed issues from a past era,” SBM Offshore Chief Executive Officer Bruno Chabas said in a statement. “We can now focus on the future, secure in the knowledge that we have put in place an enhanced compliance culture which embeds our core values.”

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