Gargi Bhattacharyya speaking on behalf of West Midlands against Policing for Profit speaking at the Public meeting ‘No Private Profits from Policing’ held on 27th September 2012 in Birmingham.
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:
For more information on the settlement:
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.
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?
The West Midlands Police Authority allows questions to be put to their meetings by members of the public, perhaps that is unless they are contentious. At the Police Authority meeting on 24th May 2012 the Chair disallowed questions on the Business Partnering for Policing agenda item, in disregard of the level of public interest. Over 30 questions were submitted and we are still awaiting an answer to ours?
- How will the human rights record of the shortlisted bidders be assessed against international human rights standards through the procurement process to ensure that they have not committed any acts of ‘grave professional misconduct’ in their commercial activities?
- Will the Ethical Trading Initiative Base Code be used to assess the compliance of the shortlisted Companies to international labour standards during the procurement process? If not how will you assess the Companies’ compliance to international labour standards?
We will post the answers when we receive them!