Mandatory exclusion for bribery and corruption: Why are KBR on the BPP shortlist?


Following the recent conviction and imprisonment of a former Chief Executive of KBR for bribery we are seeking clarification as to why KBR haven’t been excluded from the BPP shortlist. We wrote to members of the West Midlands Police Authority ahead of their meeting on 24th May 2012 pointing this out

Dear Police Authority member,

Selection of bidders to enter Gateway 3 for the Police Business Partnership

I write to you as a member of the West Midlands Police Authority in advance of tomorrow’s meeting where the Police Business Partnership will be discussed.

As a resident of the West Midlands I am concerned about the position of the company KBR on the shortlist for the BPP tender. The documented business and professional practice of this company should the cause of considerable concern to the West Midlands Police Authority in regard to its suitability as a bidder for the BPP contract.

1.       Mandatory exclusion from contracts in cases of corruption and bribery

Article 45(1) of EU Procurement Directive 2004/18/EC provides for the mandatory exclusion from public procurement for companies and individuals convicted of particular offences including bribery and corruption.

In the US courts there has been litigation with KBR and officers of the corporation facing charges of bribery and corruption.

a.       KBR in violation of the Foreign Corrupt Practices Act (FCPA)

On the 11th February 2009 The Securities and Exchange Commission ‘ announced settlements with KBR, Inc. and Halliburton Co. to resolve SEC charges that KBR subsidiary Kellogg Brown & Root LLC bribed Nigerian government officials over a 10-year period, in violation of the Foreign Corrupt Practices Act (FCPA), in order to obtain construction contracts. The SEC also charged that KBR and Halliburton, KBR’s former parent company, engaged in books and records violations and internal controls violations related to the bribery.’

For details of the Securities and Exchange Commission:

http://www.sec.gov/litigation/complaints/2009/comp20897.pdf

For more information on the settlement:

http://www.sec.gov/news/press/2009/2009-23.htm

b.      Imprisonment of for KBR CEO for bribary

On 23rd February 2012 ‘Albert “Jack” Stanley, a former chairman and chief executive officer of Kellogg, Brown & Root Inc. (KBR), was sentenced today to 30 months in prison for conspiring to violate the Foreign Corrupt Practices Act (FCPA) by participating in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts and for conspiring to commit mail and wire fraud as part of a separate kickback scheme.

http://ethic-intelligence.com/images/documents/case_law/tskj_tesler_stanley_chodan_doj_press_release.pdf

Given the conviction of the former KBR Chief Executive Officer for corruption in the US courts in February this year and prosecution of KBR under the Foreign Corrupt Practices Act by the US Government why are KBR on the shortlist for the BPP tender?


Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s