Yesterday, 11:38 AM
The following is a good overview story on the SBM Offshore bribing scandal, and Jonathan Taylor (before he was detained in Croatia)...
SBM Offshore, in 1971 relocated from the Netherlands to the Principality of Monaco. SBM is the market leader in the sale and lease of Floating Production Storage and Offloading units (FPSOs), platforms which extract, process and store oil and gas at sea.
While working for SBM, Jonathan Taylor discovered that “The business model of SBM was simple. We got the orders by paying bribes”. SBM's management board secretly added appendices to contracts, and these additional clauses described huge bribes, "commissions" to third party agents.
On 31 January 2012, the whole scandal was exposed, when an American lawyer for Noble Energy, a business partner of SBM, calls SBM HQ about incriminating information on bribes that SBM paid in Equatorial Guinea from 2005 to 2011. About $275 million had been paid in "commissions" to agents in Brazil, Angola and Equatorial Guinea, Iraq, Malaysia and Italy.
In Angola, numerous bribes were paid to employees of state-owned oil company Sonangol.
Brazil immediately stood out. SBM Offshore earned 60% of its revenues from Brazil, with "current contracts" there worth at least 25 billion euros. In the same period, $139 million in commissions was paid to Julio Faerman, much of it going to Petrobras.
What made the news extra spicy was that Brazilian President Dilma Rousseff had been the chair of Petrobras’ Supervisory Board from 2003 to 2010, and many of the directors were appointees from her Workers’ Party.
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