Tenaris to Pay SEC $78 Million to Resolve Bribery Allegations

By Dean Seal

Tenaris SA will pay $78 million to resolve the U.S. Securities and Exchange Commission's allegations that its Brazilian subsidiary engaged in bribery to secure business from the state-controlled oil giant Petroleo Brasileiro, or Petrobras.

The company, which provides steel pipes and services to the energy industry, neither admits nor denies claims that its subsidiary, Confab Industrial SA, paid $10.4 million in bribes between 2008 and 2013 to the Brazilian government in order to obtain more than $1 billion in contracts from Petrobras.

Tenaris said in a statement Thursday that it voluntarily alerted the SEC and the Justice Department to the matter in 2016 and has cooperated fully with investigators. The DOJ has closed a parallel investigation into the matter without taking action.

An internal investigation found no evidence that Tenaris or any of its employees were involved in making improper payments, the company said, and "any such payments" were made between a third party working for Confab and a Petrobras official.

A separate internal investigation by Petrobras turned up no evidence that Confab obtained any unfair advantages in return for payments, Tenaris said. Petrobras reached an $853.2 million settlement with U.S. and Brazilian authorities in 2018 to end multiple investigations into a vast bribery and kickback scheme in Brazil.

As part of its deal with the SEC, Tenaris will pay more than $53 million in disgorgement and interest, along with a $25 million fine. The company said it has already terminated its commercial agents in Brazil and significantly reduced its use of commercial agents worldwide.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

June 02, 2022 18:25 ET (22:25 GMT)

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