Wood reaches resolution on legacy investigations
25th June 2021
John Wood Group PLC ('Wood' or 'the Company')
LEI: 549300PLYY6I10B6S323
Wood reaches resolution on legacy investigations
Final settlement in line with disclosure made in FY20 results announcement
|
· |
Resolutions relate to historical conduct in the legacy Foster Wheeler business |
|
· |
Under the terms of the agreements, Wood will pay a total of $177 million over the next three years |
|
· |
The resolutions conclude the investigations into legacy Amec Foster Wheeler companies conducted by authorities in the UK, the US and Brazil |
|
· |
The SFO resolution, including financial terms, is subject to final court approval |
|
· |
Terms and financial impact of the resolutions in line with announcement made in March 2021, when Wood first disclosed it was approaching a resolution on the legacy investigations |
John Wood Group PLC ('Wood') today announces that agreements have been reached with the Serious Fraud Office ('SFO') in the UK, the Department of Justice ('DOJ') and Securities and Exchange Commission ('SEC') in the US, and the Ministério Público Federal ('MPF'), the Comptroller General's Office ('CGU') and the Solicitor General ('AGU') in Brazil, to resolve their respective bribery and corruption investigations into the past use of third parties in the legacy Amec Foster Wheeler business.
Under the terms of the agreements, the Company will pay compensation, disgorgement and prejudgment interest, fines and penalties totalling $177m. This will be phased over the next three years with approximately $62m payable in H2 2021, and the balance to be paid in instalments in 2022, 2023 and 2024. The amount and payment plan are as disclosed and provided for in Wood's financial statements for the year ending 31 December 2020, published in March 2021.
The resolutions relate to historical conduct which occurred before Amec plc acquired Foster Wheeler AG in November 2014 and prior to the combined firm's acquisition by Wood in October 2017. Wood cooperated fully with all authorities in their investigations, which is reflected in the cooperation credit that Wood received from the authorities in their respective resolutions.
In relation to the UK, a three-year deferred prosecution agreement ('DPA') relating to the use of third-party agents for bribery and corruption in five countries by Foster Wheeler has been agreed with the SFO and was the subject of a preliminary Crown Court hearing today. Wood and the SFO will seek final judicial approval of the DPA from the Court on 1st July 2021.
Wood has also entered into a three-year DPA with the DOJ, a cease & desist order with the SEC, and leniency agreements with a term of 18 months with the CGU, AGU and MPF, all in relation to the historical use of third-party agents for bribery and corruption in connection with winning a project in Brazil.
Assuming that final judicial approval is received in the UK, it will officially conclude these investigations into the legacy Amec Foster Wheeler business.
Wood continually reviews and enhances its compliance programme to mitigate the risk of recurrence of similar conduct, and now prohibits the use of sales agents or similar unless required by law. In light of its remediation actions conducted to date and compliance improvements, none of the resolutions require the appointment of an independent compliance monitor but do include certain ongoing compliance obligations to the SFO, DOJ, and Brazilian authorities for the duration of the relevant agreements.
Robin Watson, Chief Executive, Wood, said: "The investigations brought to light unacceptable, albeit historical, behaviour that I condemn in the strongest terms. Although we inherited these issues through acquisition, we took full responsibility in addressing them, as any responsible business would. Since our acquisition of Amec Foster Wheeler, we have cooperated fully with the authorities and have taken steps to further improve our ethics and compliance programme from an already strong foundation. I'm pleased that, subject to final court approval in the UK, we have been able to resolve these issues and can now look to the future."
Roy Franklin, Chair, Wood, said: "The historical conduct that led to these investigations does not reflect the values of Wood that unite us as a global team. The resolutions underline why we attach such importance to upholding the highest standards of ethics and compliance in all parts of the world where we operate, and why we continue to invest in strengthening our governance in this area."
- Ends -
About Wood:
Wood is a global leader in engineering and consultancy across energy and the built environment, helping to unlock solutions to some of the world's most critical challenges. We provide consulting, projects, and operations solutions in more than 60 countries, employing around 40,000 people. www.woodplc.com
For further information contact: press.office@woodplc.com
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund