Defense contractor Raytheon, now known as RTX Corporation, has reached an agreement to pay a significant penalty of $252 million to settle charges of bribery in relation to contracts with Qatar. The U.S. government announced this settlement on Wednesday, following allegations that the company had paid bribes to secure business deals with Qatar.
RTX Corporation has entered into a deferred prosecution agreement concerning violations of the anti-bribery provision of the Foreign Corrupt Practices Act and the Arms Export Control Act. As part of the agreement, the company will also forfeit $36.6 million. During a hearing in federal court in Brooklyn, lawyers for RTX waived their right to an indictment and pleaded not guilty to the charges, without contesting the allegations outlined in court documents.
Under the terms of the agreement, RTX must exhibit good conduct over the next 3½ years and promote a culture of ethics and compliance with anti-corruption laws. Court documents reveal that Raytheon employees and agents were involved in offering and paying bribes to a foreign official between 2012 and 2016, aiming to secure advantageous business deals with the Qatar Emiri Air Force and Qatar Armed Forces.
The bribes reportedly led to RTX winning four additional contracts with the Gulf Cooperation Council and a $510 million sole-sourced contract to construct a joint operations center for the Qatari military. Despite the anticipated profitability of these deals for Raytheon, the Qatari government ultimately decided not to proceed with the joint operations center project, according to prosecutors.
The company’s actions in attempting to secure contracts through bribery have now resulted in this substantial penalty. As part of the agreement, RTX Corporation is committed to upholding ethical standards and adherence to anti-corruption laws moving forward to prevent similar occurrences in the future.