Management

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1: Could the alleged payment of bribes to Nigerian government officials by Jeffrey Tesler be considered “facilitating payments” or “speed money” under the terms of the Foreign Corrupt Practices Act? Answer: After this all came out in June 2004, Halliburton promptly fired Jack Stanley and severed its long-standing relationship with Jeffrey Tesler, asking its three partners in the Nigeria consortium to do the same. The United States Justice Department took things further, establishing a grand jury investigation to determine if Halliburton, through its KBR subsidiary, had been in violation of the Foreign Corrupt Practices Act. In November 2004 the Justice Department widened its investigation to include payments in connection with the Nigeria fertilizer plant that Kellogg had been involved with during the 1980s under the leadership of Jack Stanley. In March 2005, the Justice Department also stated that it was looking at whether Jack Stanley had tried to coordinate bidding with rivals and fix prices on certain foreign construction projects. As of mid 2007, the U.S. investigation was still ongoing. 2: Irrespective of the legality of any payments that may have been made by Tesler, do you think it is was reasonable for KBR to hire him as anintermediary? Answer: Tesler’s involvement in the project might have remained unknown were it not for an unrelated event. Georges Krammer, an employee of the French company Technip, which along with KBR was a member of the consortium, was charged by the French government for embezzlement. When Technip refused to defend Krammer, he turned around and aired what he perceived to be Technip’s dirty linen. This included the payments to Tesler to secure the Nigeria LNG contracts. 3. Given the known corruption of the Abacha government in Nigeria, should Kellogg and its successor, KBR, have had a policy in place to deal with bribery and corruption? What might that policy have looked like?Answer: It is not known whether a bribe was actually...
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