Tyco International Ltd. agreed to pay more than $26 million to resolve US charges that it bribed officials of companies including Saudi Aramco to win contracts. Tyco Valves & Controls Middle East Inc., a subsidiary of Schaffhausen, Switzerland-based Tyco, agreed to pay $13.7 million as part of a guilty plea entered today before US District Judge Claude Hilton in Alexandria, Virginia, for conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act, the US Justice Department said in a statement. In a civil proceeding, Tyco, which makes and sells products related to security, fire protection and energy, agreed to pay $13.1 million under a final judgment with the Securities and Exchange Commission, according to the statement.
Fueled by large revenues due to the high oil prices, recent years witnessed huge government spending in Saudi Arabia. With the huge government spending, the potential for corruption to win government contracts increased exponentially. What we see here might be just the tip of the iceberg. ♦