The Indonesian state electricity company developed a project to expand the Tarahan coal-fired power plant by adding a steam generator. Marubeni was a member of the consortium that won the contract for the project in 2004. The scheme was completed in 2007.
The DOJ has been conducting an investigation into the consortium members and other parties on suspicion of violations of the US Foreign Corrupt Practices Act (FCPA) with respect to agents who were allegedly retained by the consortium to make improper payments to Indonesian government officials. As a result of this investigation, Marubeni has agreed to plead guilty to violating and conspiring to violate the FCPA and to pay a fine of US$88m in order to resolve the criminal charges. Sentencing has been scheduled for 15 May 2014.
This follows the successful completion by Marubeni of its obligations under a January 2012 deferred prosecution agreement entered with the DOJ relating to a liquid natural gas project in Nigeria. That agreement required Marubeni to retain a corporate compliance consultant for two years to review and enhance its anticorruption compliance programme to ensure that it satisfies standards specified by the DOJ, and to report to the DOJ regarding the results of this review.
The Tarahan project predates the execution of Marubeni’s 2012 deferred prosecution agreement with the DOJ. Marubeni said that it has undertaken extensive efforts to enhance its anti-corruption compliance programme, and believes that its current programme is robust and effective.
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