Sentencing takes Place in FCPA Action Against Marubeni Corporation

June 11, 2014 — Marubeni Corporation — a Japanese multinational power generation services provider — has been sentenced for its role in bribing high-ranking Indonesian government officials to obtain a $118 million contract. Misconduct involving foreign bribery violates the U.S. Foreign Corrupt Practices Act (FCPA) and prevents the establishment of a level playing field for international businesses that would allow honest competition to prosper. To discourage companies from bribing foreign government officials to obtain business, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 set up a whistleblower program. Tipsters who notify the U.S. Securities and Exchange Commission (SEC) about foreign bribery enterprises may receive significant rewards from the government.

Marubeni Plea Agreement in Case Alleging Foreign Bribery of Indonesian Officials Includes $88 Million Fine

Marubeni pleaded guilty in March 2014 to several FCPA violations. The plea agreement included an admission of criminal conduct and an $88 million fine. The foreign bribery allegations surfaced in connection with Marubeni’s bribery of Indonesian officials in a play to win an $118 million power generation contract, called the Tarahan project.
Marubeni and its employees allegedly bribed a high-ranking member of the Indonesian Parliament as well as high-ranking members of the state-run electricity company in Indonesia, Perusahaan Listrik Negara (PLN), in return for the officials’ help in securing the deal. To cover up the illegal bribery, Marubeni and a consulting partner hired two consultants, purportedly to provide consulting services on the Tarahan project. In actuality, alleged the U.S. Justice Department, the consultants were hired to pay bribes.
Marubeni’s first consultant was supplied with hundreds of thousands of dollars to bribe members of the Indonesian Parliament. But in the fall of 2003, Marubeni decided that its consultant was ineffective at the job. The first consultant’s commission was reduced from three percent to one percent. The remaining two percent commission went to a second consultant who was better at bribery.
Marubeni’s bribery scheme ultimately worked. The company landed the Tarahan power project, the Indonesian officials received their bribes and the “consultants” took home their commissions.

Insider Employees Tip Off SEC to Foreign Bribery Enterprises

The qui tam attorneys at Waters & Kraus are committed to the rights of whistleblowers who are ready to collaborate with the U.S. government. Our experienced lawyers are devoted to protecting their clients’ rights during the process. Contact us by email or phone our FCPA lawyers at 855.784.0268 to learn more about the FCPA and your role in doing the right thing.

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