"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Sunday, August 26, 2007

Iraq Oil for Food - Textron Inc. agrees fraud pays Fines

The Department of Justice (DOJ) have announced an agreement by Textron Inc.(Textron Inc. is an $11 billion multi-industry company operating in 32 countries with approximately 40,000 employees) to pay fines totalling US$1.5 Mn.after admitting that between 2000 and 2003, 3 of Textron's David Brown French subsidiaries in its Fluid and Power Business Unit paid a total of approximately US$600,000 to the Iraqi government. This involved inflating the price of contracts by 10 percent before submitting the contracts to the United Nations for approval.

The subsidiaries concealed from the United Nations the fact that the price contained a kickback to the Iraqi government.

The DOJ has agreed not to file criminal charges against the company or its subsidiaries in recognition of Textron's early discovery and reporting of the improper payments; Textron's' thorough review of those payments as well as its discovery and review of improper payments made in other countries, including India, Egypt, and the United Arab Emirates; and the company's implementation of enhanced compliance policies and procedures.

In a related SEC civil injunctive action filed earlier today, Textron agreed to pay approximately $3.5 million in disgorgement and civil penalties.

There are no criminal charges involved in the settlements and no Textron officers were involved. Disciplinary action has been taken with respect to certain individuals (not named) involved in the matter, including in some cases, termination of employment.

To put this admission of breach of UN sanctions in perspective .....

The UN-established Independent Inquiry Committee, led by former US Federal Reserve Chairman Paul Volcker, named politicians in Russia, France, Britain, Italy and other nations who were given favours by Saddam in his quest to get 1990 UN sanctions lifted.

More than 2,200 companies, including major concerns like DaimlerChrysler, Siemens and Volvo, and the UK Weir group, made illicit payments totalling $US1.8 billion to Saddam Hussein's government during the UN oil-for food program.

The report said that under the program Iraq sold a total of $US64.2 billion of oil to 248 companies, of which 139 paid illicit surcharges.

In turn 3,614 companies sold $US34.5 billion of humanitarian goods to Iraq and the Volcker report said 2,253 paid kickbacks.

The total that Iraq made from the companies, which were registered in 66 countries, was $US1.8 billion .

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