KPMG in the Netherlands has agreed to pay 7 million euros to settle charges involving three former audit partners accused of helping conceal bribery payments for a former client, Ballast Nedam, more than 10 years ago.

KPMG reached the agreement with the Dutch Public Prosecutor's Office, which investigated the charges for financial years 2000 through 2003. Ballast Nedam is a construction contractor accused of paying hundreds of millions in bribes to win large project contracts in Saudi Arabia. The construction company agreed to pay 17.5 million euros in December 2012 to settle its own charges, and it appointed a new compliance and risk officer at the same time.

The Dutch PPO accused three former audit partners and KPMG of conducting Ballast Nedam audits in a way that enabled payments made to the construction company by foreign agents to remain hidden from view, KPMG said in a statement. The firm also was accused of giving inadequate attention to compliance with ethics and integrity requirements. KPMG said no other firms in its global network beyond KPMG Accountants NV were involved in the Dutch PPO investigation.

KPMG said the settlement included the firm putting into place additional compliance measures meant to improve the focus on quality, ethics, and integrity. The settlement “brings to a close an extremely unfortunate case from our past,” said Jurgen van Breukelen, chairman at KPMG NV, in a statement. “We are shocked by the facts as they have unfolded in this case during the recent past and find these completely unacceptable. In line with our values and code of conduct, we strongly condemn the behavior of these individuals.”

The 7 million euro settlement consists of 3.5 million euros in penalty and an additional 3.5 million euros in forfeiture, KPMG said.

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