Mabey & Johnson Limited, the UK-based bridge builder, has finalised a criminal plea agreement with the Serious Fraud Office. The matter was self-reported to the SFO, following which a negotiated fine and confiscation took place. As such, this represents the first successful criminal prosecution for bribery by the SFO, and an example that SFO head Richard Alderman’s call for companies uncovering problems to ‘come and talk to us’ (see the earlier post on self- reporting to the SFO) may not have fallen entirely upon deaf ears.
Mabey & Johnson pleaded guilty under s1 Criminal Law Act 1977 (Statutory Conspiracy) to paying bribes between 1994 and 2001 to government officals in Ghana and Jamaica. In addition, in 2001/1, it admitted making payments to persons in Iraq in breach of UN sanctions and the Oil for Food rules.
The route by which this arrived at the SFO appears to have stemmed from an employee telling all during an employment dispute, following which a full internal investigation was carried out and the issues were then fully uncovered. Knowing that they were in possession of funds which were the proceeds of a criminal activity, the directors were faced with having to make a disclosure under the Proceeds of Crime Act under the Money Laundering rules, else commit and continue to commit a criminal offence. If such a declaration was going to be made to the Serious Organised Crime Agency, then the SFO would soon be told by POCA – so why not make a disclosure to both agencies at the same time? (More on the decision to self report and the interaction between bribery and money laundering can be found in this post here.)
In any event Mabey & Johnson did not meet the criteria for a civil settlement with the SFO and immunity from criminal actions was unlikely from the outset.