The company will pay this fine after having reached several agreements with the American authorities.
The company Raytheon, a subsidiary of the American aeronautics and defense group RTX, has reached several agreements with the American authorities under which it will pay more than 950 million dollars for, among other things, fraud, corruption and violation of legislation on armaments.
“Raytheon engaged in fraudulent schemes to deceive the U.S. government out of contracts for critical military systems and to win contracts through bribery in Qatar”said Kevin Driscoll, an official at the US Department of Justice, on Wednesday, quoted in a press release.
The company, prosecuted civilly and criminally by several American states in coordination with the Stock Exchange Police (SEC), has concluded two so-called deferred prosecution agreements (DPA) for a period of three years. They provide for the appointment of an independent supervisor, a strengthening of its internal compliance program, the reporting of any fraudulent behavior as well as cooperation in any current or future investigation, specified the DoJ.
Supply of Patriot missile systems and radar systems
The charges relate to the supply of weapons and services, including Patriot missile systems and radar systems, as well as the corruption of a senior official of the Qatar Armed Forces (QAF), including through “false subcontracts”.
American authorities also accused Raytheon of inflating the price of certain contracts and falsifying documents, resulting in additional costs to the detriment of the American Department of Defense of more than $111 million. These practices took place between 2009 and 2020, with some falling within a reduced range from 2012 to 2016.
“RTX takes responsibility for the wrongdoing that occurred. We have worked diligently during investigations to address these wrongdoings and continue to do so,” the group reacted in a press release, confirming that it had provisioned the amount it will have to pay.
During the presentation of its second quarter results on July 25, the group had in fact mentioned these lawsuits linked to “improper payments made by Raytheon and its joint company Thales-Raytheon Systems (TRS), in connection with contracts in the Middle East since 2012”.
He specified that he had increased his ad hoc reserves by 918 million that quarter, bringing the total to 1.24 billion. In electronic trading after the New York Stock Exchange closed, RTX shares remained stable (-0.04%) after ending the session up 0.95%.
