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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Foreign Corruption Global Settlement

In June 2007, the U.S. Department of Justice launched a Foreign Corrupt Practices Act (FCPA) investigation into allegations that BAE Systems, using American banks, made up to $2 billion in secret payments to the former Saudi Arabian ambassador to the United States, Prince Bandar bin Sultan, in the years after securing a multi-billion dollar arms deal with Saudi Arabia (the al-Yamamah deal). In February 2010, BAE entered into a settlement with the Department of Justice and the UK Serious Fraud Office (SFO), which launched an investigation in 2004 of alleged bribery by BAE in Saudi Arabia and other countries. Under the agreement with the Department of Justice, the company pleaded guilty to one charge of conspiring to make false statements to the U.S. government in connection with certain regulatory filings and agreed to pay a fine of $400 million. Under the agreement with the SFO, the company pleaded guilty to one charge of breach of duty to keep accounting records in relation to payments made to a former marketing adviser in Tanzania and agreed to pay a penalty of £30 million (approx. US$47 million) consisting of a fine and a charitable payment for the benefit of Tanzania. In December 2010, BAE Systems pleaded guilty in the SFO investigation to not keeping proper payment records and was ordered to pay a £500,000 (US$775,000) fine and £225,000 (US$348,750) in legal fees.

Misconduct Type
Ethics
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Settlement
2/5/2010
Contractors Involved Penalty
Total
BAE Systems $448,123,750

Federal Contractor Misconduct Database