AMEC plc, the listed UK based project management company serving the oil and gas, mining, power, and water industries has agreed a Civil Recovery Order with the Serious Fraud Office.
Comparatively little was disclosed about the offences to which the order was made, as there is apparently an ongoing criminal investigation into related issues, however it relates to “the receipt of irregular payments” totalling $9m made between November 2005 and March 2007 in connection with the Public Private Partnership to construct South Korea’s massive Incheon Bridge. AMEC plc was a shareholder in the project, although the business unit which carried out the work has since been disposed of.
It is unclear what business advantage was been obtained as a result of the irregular payments. According to Amec’s press release, found here:
“No improper overall commercial advantage accrued to AMEC in connection with the receipts and no adjustment is required to any AMEC financial statements.”
The SFO is taking no criminal action (at least not against AMEC plc as part of this action) but instead went down the Civil Recovery Order route. Accordingly, similar to the Balfour Beatty settlement, AMEC accepted that improper accounting records had not been kept as required by Section 221 Companies Act 1985, which deals with every company’s duty to keep accounting records.
In a consent order, AMEC plc has agreed to a civil penalty of £4,943,648 plus costs. The SFO reported that AMEC acted promptly and self-reported the case to the SFO, and has worked on remediation. It is not entirely clear how the amount of the CRO was determined, although appears to bear relation to the amount of the irregular payments.
The SFO press release is here.