The Securities and Exchange Commission (SEC) has charged Robert Philip, former chairman and CEO of Portland, Oregon-based Schnitzer Steel Industries, with breaching anti-bribery provisions of the USA’s foreign corrupt practices act (FCPA) by approving cash payments and other gifts to officials at Chinese government-owned steel mills to entice their business.
Philip has agreed to return $US169,863.79 (₤84,103.40) in bonuses and pay $US16,536.63 in prejudgment interest and a $US75,000 civil penalty, and has also agreed to an order directing him from future violations of the FCPA.
SEC’s complaint, filed in the Portland district court, alleges that, from at least 1999 to 2004, Philip authorised payments of more than $US200,000 in cash bribes and other gifts to managers at government-owned steel mills in China to induce them to purchase scrap metal from Schnitzer.
The commission alleges Schnitzer generated more than $US96m in revenue, and more than $US6.2m in profits, from sales to customers who had received the improper payments. The complaint further alleges Philip authorised more than $US1.7m in payments to managers of privately owned steel mills in both China and South Korea, generating more than $US500m in additional revenue for the company.
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