Former Innospec CEO admits bribery to falsify product tests

10 Sep 2012

The SFO has announced that Paul Jennings, former CEO of Innospec Ltd, has pleaded guilty to one charge of conspiracy to corrupt Iraqi public officials and other agents of the Iraqi Government. This charge relates to allegations that Mr Jennings paid inducements to officials to ensure that tests on a competitor product were concluded with an unfavourable assessment of that product. Mr Jennings’ sentencing has been adjourned.

Innospec Ltd, a UK subsidiary of Innospec Inc, (a US NASDAQ listed company), had previously pleaded guilty to charges in relation to various corruption offences: between February 2002 and December 2006, Innospec Ltd, through various agents, engaged in systematic and large scale corruption of senior government officials of Indonesia to secure contracts for the supply of a fuel additive Tetraethyl Lead (“TEL”). The corrupt behaviour took the form of bribes, totalling approximately $8 million. The seriousness of the corruption was aggravated by the fact that Innospec Ltd’s behaviour was aimed at blocking legislative moves to ban TEL, due to environmental and public health concerns.

See our briefing (http://www.herbertsmith.com/NR/rdonlyres/84367967-FFE4-4C65-B68C-83A9B1CB9F4D/14875/CorporateCrimeUpdateMarch2010RvInnospecLtd.html?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1) of March 2010.