By Mengqi Sun
The Wall Street Journal
Aerospace and industrial conglomerate Honeywell International Inc. said it has recorded a charge of $160 million to cover an expected loss related to bribery investigations by U.S. and Brazilian authorities.
The Charlotte, N.C.-based company, which first disclosed the probes in 2019, is being investigated by the U.S. Justice Department, the U.S. Securities and Exchange Commission and Brazilian authorities related to its compliance with the U.S. Foreign Corrupt Practices Act and similar Brazilian laws.
In its quarterly report to the SEC filed Friday, Honeywell said that discussions with authorities are continuing. While it can’t predict the outcome of the investigations, the company said it estimated that the resolution of the probes would result in a loss of at least $160 million, based on available information, according to the filing.
The authorities are investigating Honeywell’s use of third parties that previously worked for its oil-products business on a 2010 contract with Brazil’s state-controlled oil company Petróleo Brasileiro SA, Honeywell said. The investigations involve interviews with former and current employees and document production, the company said.
The company said the DOJ and the SEC also are investigating a Honeywell subsidiary’s previous engagement with oil-services firm Unaoil SAM in Algeria.
A spokesman for Honeywell didn’t provide additional comment. Spokespeople for the DOJ and SEC declined to comment.
The original story can be found here: https://www.wsj.com/articles/honeywell-expects-to-pay-at-least-160-million-to-resolve-bribery-probes-in-u-s-brazil-11634947538