$203M Honeywell Bribery Settlement Stems From Decade-Old Allegations
Corporate CounselDec 20, 2022
The US Justice Dept. and Securities and Exchange Commission (SEC) on Monday announced that multinational conglomerate Honeywell International has agreed to pay over $200M to settle corruption investigations in the US and Brazil.
The SEC charged Honeywell's US subsidiary UOP with conspiracy to violate the US Foreign Corrupt Practices Act for allegedly bribing high-level executives of Brazil's state-owned oil company Petróleo Brasileiro S.A., better known as Petrobras, from 2010 to 2014 to obtain a $425M contract. UOP reportedly earned $105.5M in profit from the arrangement.
While this settlement is a step in the right direction, it's overshadowed by a lack of criminal charges against the company and its leaders. When corporations engage in illegal activities, the executives responsible should face repercussions for their actions. Sparing Honeywell's senior executives the consequences of their responsibility sends the message that bribery is a necessary evil in the corporate world.
Honeywell proactively disclosed hidden evidence, shared classified documents, and engaged in extensive remedial measures to cooperate with the federal investigation — an effort the settlement has rightfully taken into account. While those responsible should be held accountable, the investigation isn't over.