The Securities and Exchange Commission said today it charged the Swiss-based company with violating US law by offering foreign officials bribes, improper travel and entertainment to win contracts under the United Nations' Oil-for-Food program. Regulators say Weatherford falsified its records to hide these payments as well as other transactions in Cuba, Iran, Syria and countries subject to US sanctions.
Weatherford says it agreed to pay USD 253 million to settle the charges and other claims against it by the US Department of Justice, the Department of Commerce and other federal agencies.
"This matter is now behind us. We move forward fully committed to a sustainable culture of compliance," said Weatherford CEO Bernard Duroc-Danner, in a statement.
SEC officials said in a release that Weatherford's lack of internal controls led to an environment where employees engaged in bribery and failed to maintain accurate records.
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Weatherford staffers used code names like "Dubai across the water" to hide business dealings in Iran, according to the SEC investigation. In other cases the company created bogus accounting and inventory records to hide illegal transactions.
Among other improper payments, the SEC said Weatherford paid for a trip to the 2006 World Cup for two officials from a state-owned Algerian company, a honeymoon for an official's daughter and a religious trip to Saudi Arabia for an official and his family.
"This case demonstrates how loose controls and an anemic compliance environment can foster foreign bribery and fraud by a company's subsidiaries around the globe," said Mythili Raman, acting assistant attorney general of the Justice Department's criminal division.
US shares of Weatherford International Ltd. Rose 27 cents, or 1.7 per cent, to USD 16.22 in afternoon trading today. Its shares have risen more than 42 per cent so far this year.