LONDON, May 1 -- The government of the United Kingdom issued the following news:
The Serious Fraud Office (SFO) has secured a £10 millionpayment from a Britishmanufacturer of electronic systems for the international defence and aerospace marketafter itacknowledged accountability for failureto prevent bribery.Ajudgetoday approved a Deferred Prosecution Agreement(DPA)requiringUltra Electronics Holdings Ltdto pay the penalty,plus £4.8 million inSFOinvestigation costs.
In addition to the financial penalty and costs, the DPArequiresthecompany to meet strict conditionsanddemonstrategenuine and sustained reform under the scrutiny ofthecourt.
Director of the Serious Fraud Office, Graham McNultyQPM, said:
Publicservices and criticalnationalinfrastructuredepend onbusinessbeing carried out honestly and lawfully.Briberyundermines that trust and corrodes the systems on which society relies. Today's outcome underlines the Serious Fraud Office's determination to investigate and hold companies to account where those standards are breached.
An investigation was opened intothe companyin 2018 after itreportedsuspected offences of corruptionrelating to conduct in Algeria.In 2024,thisinvestigationwas extendedtoalljurisdictionsin which the companyoperated.
The DPA relates to failure toprevent briberyin connection with three public sector contractssoughtthrough the use of agents. These included a contractworthup to£200 millionawarded bythe Omani Ministry of Transport and Communications.
There weretwofurthercontractssoughtin Algeria. One forinformation technologyand e-commerce solutions at Houari Boumediene Airport in Algiers, and a second for encryption technologyforthe Algerian Ministry of Post andTelecommunications. The Algerian contracts-ultimately notsecured by the company -were expected togeneratea profit of £1.4million.
UltraElectronicsmust pay the penalty and SFOinvestigationcosts within 30 days. Thecompany must alsoprovideyearly reportsfor the next three yearsto the SFO todemonstratetheeffectivenessof itsanti-bribery and compliance programme.
Notes to editors
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Under the Bribery Act 2010, a company can be held criminally liable if someone acting on its behalf pays a bribe to win orretainbusiness - unless the company candemonstrateit had adequate procedures in place to prevent bribery from occurring.
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A DPAis a voluntary agreement between a prosecutor and an organisation, approved by a judge, under which prosecution is deferred in exchange for the organisation meeting certain conditions, including financial penalties and cooperation with investigators.
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The SFO previously withdrew from negotiations withUltra Electronicswhen it concluded the conditions for a meaningful agreement were not in place. It was only following significant changes to thecompany'sownership,structureand leadership that negotiations resumed. The SFO satisfied itself thatUltra Electronics'new leadership had both the willingness and the capacity to engage in good faith before talksresumed.
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Ultra Electronics waspart of the FTSE 250 Index until 1 August 2022when it was taken privateby Advent.Itnowoperatesunder new leadership.
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This concludes the SFO's criminal investigation into Ultra Electronics.
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