Chevron in Oil-For-Food Settlement

Chevron Corp. has agreed to pay $30 million to resolve criminal and civil liabilities related to procurement of oil under the UN oil-for-food program. Chevron obtained Iraqi oil under the programme from third parties that paid secret, illegal surcharges to the former government of Iraq, the prosecutors said today.

The US Securities and Exchange Commission (SEC) said Chevron agreed to the settlement brought under the Foreign Corrupt Practices Act without admitting or denying the allegations. Chevron will not be prosecuted and will continue to co-operate with investigators, prosecutors said. The deal will see Chevron, the second biggest oil company in the US, pay $25 million in profits and a $3 million civil penalty. The company also will pay the treasury department's Office of Foreign Asset Controls $2 million.

COMMENT: Basically it called Kickbacks.... it was found be corrupt after 2,200 companies in 66 countries paid $1.8 billion in kickbacks to Iraqi officials to win supply deals. The program was established to help Saddam Hussein's Iraq sell oil to buy humanitarian supplies while it was under UN sanctions due to its 1990 invasion of Kuwait.