Austal to Pay $24 Million in Foreign Bribery Case

Background

Austal, an Australian shipbuilder, has agreed to pay a $24 million fine to settle an investigation by the U.S. Department of Justice (DOJ) into alleged violations of the Foreign Corrupt Practices Act (FCPA).

The investigation centered on bribes paid to officials in Malaysia and the United Arab Emirates (UAE) between 2003 and 2011.

Settlement Details

Under the terms of the settlement, Austal will pay a $24 million fine and implement a comprehensive compliance program.

The company has also agreed to cooperate with the DOJ's ongoing investigation into potential criminal charges against former employees.

Bribery Allegations

According to the DOJ, Austal employees made improper payments to officials in Malaysia and the UAE to secure contracts for the sale of patrol boats.

The bribes allegedly took various forms, including cash, travel expenses, and other benefits.

Compliance Program

As part of the settlement, Austal has agreed to implement a comprehensive compliance program designed to prevent future violations of the FCPA.

The program includes measures to strengthen the company's internal controls, enhance due diligence procedures, and provide training to employees on anti-corruption laws.

Significance of Settlement

The settlement is significant because it demonstrates the DOJ's continued focus on enforcing the FCPA.

It also sends a message that companies operating overseas must have robust compliance programs in place to prevent and detect corruption.

Next Steps

The DOJ's investigation into potential criminal charges against former Austal employees is ongoing.

The settlement does not preclude the DOJ from bringing criminal charges against individuals in the future.