Mon Oct 27, 2014 3:38pm EDT
Oct 27 (Reuters) - Layne Christensen Co, a water management and drilling company, agreed to pay nearly $5.13 million to resolve U.S. Securities and Exchange Commission charges that it bribed officials in several African countries to obtain business favors and reduce tax liabilities.
The SEC said the payment was less than it might have been because Layne reported its misconduct, cooperated with the regulator, and undertook "extensive" steps to reduce bribery risks and prevent future violations of the federal Foreign Corrupt Practices Act.
Layne did not admit or deny wrongdoing in agreeing to settle. In August, Layne said the U.S. Department of Justice closed a related probe without bringing charges. The company is based in The Woodlands, Texas.
According to the SEC, Layne units in Africa and Australia obtained $3.89 million of illegal benefits from 2005 to 2010 by arranging for more than $1 million of improper payments to government officials in Burkina Faso, the Democratic Republic of the Congo, Guinea, Mali and Tanzania.
The SEC said these benefits included tax savings, easier customs clearance, work permits, and relief from immigration and labor inspections.
The $5.13 million payment reflects the value of improper benefits, $858,721 of interest and a $375,000 penalty.
"Layne's lack of internal controls allowed improper payments to government officials in multiple countries to continue unabated for five years," Kara Brockmeyer, chief of the SEC enforcement division's FCPA unit, said in a statement.
"However, Layne self-reported its violations, cooperated fully with our investigation, and revamped its FCPA compliance program," she added. "Those measures were credited in determining the appropriate remedy."
Layne did not immediately respond to requests for comment.
In afternoon trading, Layne shares were up 78 cents, or 12.4 percent, at $7.09. They had fallen 22.7 percent on Friday and touched a 12-year low, after the company on Thursday forecast a third-quarter loss that exceeded analysts' expectations. (Reporting by Jonathan Stempel in New York; Editing by Steve Orlofsky)
- Link this
- Share this
- Digg this
- Email
- Print
- Reprints