By John Donovan
17 March 2008
Shell had today announced that it is under investigation by the U.S. Department of Justice for potential violations of the US Foreign Corrupt Practices Act and has also instigated an internal investigation.
Shell has also confirmed that it is cooperating with active investigations being carried out by the US Department of Justice and the United States Securities and Exchange Commission. Shell has admitted that it may face fines and costs.
The following is taken from page 15 of the *Royal Dutch Shell Plc 2007 Annual Report published today…
COMPLIANCE WITH US FOREIGN CORRUPT PRACTICES ACT
In July 2007, Shell’s US subsidiary, Shell Oil, was contacted by the US Department of Justice regarding Shell’s use of the freight forwarding firm Panalpina, Inc and potential violations of the US Foreign Corrupt Practices Act (FCPA) as a result of such use.
Shell has started an internal investigation and is cooperating with the US Department of Justice and the United States Securities and Exchange Commission investigations.
While these investigations are ongoing, Shell may face fines and additional costs.