Halliburton Case Write Up Complete Version

Halliburton Case Write Up Complete Version - Halliburton...

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Halliburton Case Write Up Accounting Theory I Professor: Jian Zhou Group Member:
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Jinghui Zhu Rio Peng Xiajun Yuan Zhishi Guo Case briefing and more background: Halliburton Energy Services is a US-based multinational corporation with operations in more than 120 countries. It has been at the forefront of several media and political controversies in relation to its previous work for the U.S. Government, its political ties, and its corporate ethics. Their former executive Albert J. "Jack" Stanley were found guilty to use a $180 million bribery to win a bid of the title build a liquefied-natural-gas plant in Nigeria. The case occurred in mid of 1990, last century. Nigerian government offered a bid for liquefied- natural-gas plant constructing. Finally KBR (Kellogg Brown-Root) wined the bid and owned nearly 4 billion of the whole projects, and Mr. Stanley was one of its decision makers. KBR merged with Halliburton in 1998. The scandal was first exposed and disclosed in France in 2004. News came out that a huge bribery of 180 million was used to win the bid. Then
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Dick Cheney had been chairman of board of director committee in Halliburton from 1989 to 1995. There are couples of issues that are disputed: 1. Supply U.S. Global Army Force in with catering and charge huge extra fees as kickback. 2. Trade with Iran which was deemed illegal 3. Acquire transportation contract without other competition So Halliburton really adopt illegal measures to advantage others in business. U.S.'s regulation and stance on this kind of issue: In order to keep the justice of foreign trade, FCPA (FOREIGN CORRUPT PRACTICES ACT) is brought out to bring a halt to the bribery of foreign officials and to restore public confidence in the integrity of the American business system. The anti-bribery provisions of the FCPA make it unlawful for a U.S. person to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person or any parties. The FCPA's anti-bribery provisions extend to two types of behavior. The basic prohibition is against making bribes directly; a second prohibition covers the responsibility of a domestic concern and its officials for bribes paid by intermediaries. In Halliburton case, Mr. Stanley didn’t make the bribes directly, but the bribes are paid by intermediaries (Quote from article: KBR paid a combined $182 million, through two agents, to bribe Nigerian officials in a scheme to win a series of contracts). But the penalty for foreign bribery is not that severe: a fine of up to $2 million and imprisonment for up to five years. More severe penalties should be legislated to prevent bribery and corruption. Necessity for oversea bribery forbidding and bribery’s relation with accounting:
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Halliburton Case Write Up Complete Version - Halliburton...

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