Tuesday, October 27, 2009

SFO hits Amec with £5m civil recovery order

Amec has paid ВЈ5m to the Serious Fraud Office in the form of a Civil Recovery Order after payment irregularities were discovered on one of the firm's PPP projects.

Amec made a referral to the SFO in March 2008 following an internal investigation into the receipt of irregular payments. The payments, which were made between November 2005 and March 2007, were associated with a project in which Amec is a

The SFO determined that unlawful conduct occurred in connection with the description entered into Amec's books and records of the payments in question which amounted to failure to comply with the requirements of section 221 of the Companies Act 1985.

The SFO said that upon completion of the internal investigation Amec acted promptly and responsibly in referring the case and has since co-operated with the SFO’s investigation into the corporate irregularities.


SFO hits Amec with £5m civil recovery order


In a Consent Order agreed before the High Court today, Amec agreed to a settlement payment of ВЈ4,943,648 plus the costs incurred as a result of the Civil Recovery proceedings.

An Amec statement said: "In late 2007 identified certain irregular receipts received between November 2005 and early 2007, amounting to some US$9 million.

"Amec promptly appointed external advisors to carry out an investigation and self-reported the findings to the appropriate authorities, including the Serious Fraud Office (SFO), in March 2008. A subsequent SFO investigation has determined that no proceedings should be commenced against Amec or any of its associated group companies. The SFO has concluded, however, that there was a failure to keep accurate records as required by the companies legislation and that this matter is suitable for civil resolution.

"Amec has agreed to pay the sum of ВЈ4,943,648 in respect of a Civil Recovery Order, plus a contribution towards associated costs, in full and total settlement of this matter. As recognised by the SFO, Amec acted promptly and responsibly in connection with the matter and Amec has co-operated with the SFO throughout the investigation.

"No improper overall commercial advantage accrued to Amec in connection with the receipts and no adjustment is required to any Amec financial statements. These receipts were associated with Amec’s last remaining active PPP project. The division to which it belonged was divested in mid-2007. The project is now complete, ahead of the original schedule.

"Amec is committed to the highest ethical standards. The company’s code of business conduct requires that all its businesses and employees act with integrity at all times and that there is strict compliance with applicable laws. Amec has appointed an independent consultant to review and report upon its existing ethics and compliance programme, to ensure these standards are maintained."


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