Global manufacturer Honeywell International said in a regulatory filing Friday it has recorded a charge of $160 million in accrued liability concerning an investigation by U.S. and Brazilian authorities as to whether the company’s use of third parties in Brazil violated the Foreign Corrupt Practices Act (FCPA).
Honeywell said it continues to cooperate with investigations by the Department of Justice, the Securities and Exchange Commission, and Brazilian authorities “relating to our use of third parties who previously worked for our UOP business in Brazil in relation to Petróleo Brasileiro (Petrobras) in connection with a project awarded in 2010.” The company first disclosed the probes in July 2019.
The investigations focus on compliance with the FCPA and similar Brazilian anti-corruption laws “and involve, among other things, document production and interviews with former and current management and employees,” the company stated in its most recent update.
Honeywell also said U.S. authorities are examining “a matter involving a foreign subsidiary’s prior contract with Unaoil S.A.M. in Algeria executed in 2011” and that it continues to engage in discussions with authorities concerning a “potential comprehensive resolution of these matters.”
“As the discussions are both ongoing and at different stages with regards to each respective authority, there can be no assurance as to whether we will reach a resolution with such authorities or as to the potential timing, terms, or collateral consequences of any such resolution,” Honeywell stated. “As a result, we cannot predict the ultimate outcome of these UOP Matters or the potential impact on the company.”