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American company Raytheon pays one billion dollars to settle corruption cases related to contracts with Qatar
Raytheon, a subsidiary of American aerospace and defense group RTX, has reached several agreements with U.S. authorities, under which it will pay more than $950 million to settle fraud, corruption, and arms violation cases.
Kevin Driscoll, an official with the U.S. Department of Justice, stated in a press release on Wednesday that Raytheon "was involved in fraudulent activities to deceive the U.S. government regarding contracts related to sensitive military systems and to win contracts through bribery in Qatar."
The company is facing civil and criminal prosecution from several U.S. states in coordination with the Securities and Exchange Commission (SEC) and has entered into two agreements known as Deferred Prosecution Agreements (DPA) for a period of three years.
Raytheon also reached a separate settlement regarding the False Claims Act with the department related to defective pricing schemes for certain government contracts. The Department of Justice's decisions concerning the Foreign Corrupt Practices Act and the International Arms Trade Regulations are coordinated with the SEC.
The agreements stipulate the appointment of an independent monitor, the enhancement of the company's internal compliance program, the reporting of any fraudulent behavior, as well as cooperation in any current or future investigations, according to the Department of Justice.
Officials from the department and the Federal Bureau of Investigation (FBI) stated in the DOJ's press release that Raytheon "knowingly committed fraud against the U.S. government" to obtain "lucrative military contracts," thus putting "the national security of the United States and its allies at risk."
The charges relate to the supply of weapons and services, including Patriot missile systems and radar systems, as well as "sham contracts" with a provider in Qatar to pay bribes to secure contracts with Qatari defense entities.
Additionally, U.S. authorities accused Raytheon of inflating prices on certain contracts and falsifying documents, resulting in additional costs to the Pentagon exceeding $111 million.
The company also admitted that it caused the Pentagon to incur costs double the value of the contract itself.
All of this occurred between 2009 and 2020, particularly during the period from 2012 to 2016.
