GE Fined US$23 Million over Iraq Bribery Charges

General Electric has agreed to pay US$23 million to the US Government to settle allegations it bribed Iraqi officials.

The Securities and Exchange Commission accused GE of being part of a US$3.6 million kickback scheme with Iraqi government agencies to win contracts to supply medical equipment and water purification equipment.

Four subsidiaries were accused of bribing officials at the Iraqi ministries of health and oil, trading cash, computer equipment and medical supplies to win lucrative contracts.

SEC officials claimed the four GE units - two of which were not part of the firm when the alleged bribery took place - earned around US$18.4 million as a direct result of the kickbacks.

The contracts were linked to the UN's discredited "oil-for-food" program that allowed international firms to offer services paid with Iraqi oil revenues.

An investigation later found that Iraqi officials siphoned off around $1.7 billion in kickbacks from the contracts.
In a statement, GE said the "conduct did not meet our standards."

"We believe that it is in the best interests of GE and its shareholders to resolve this matter now, without admitting or denying the allegations, and put the matter behind us,” a company statement indicated.