(Alliance News) - Balfour Beatty PLC on Thursday said US subsidiary Balfour Beatty Communities has agreed on a resolution with the US Department of Justice, for which the subsidiary will pay a total of USD65.4 million.
The decision resolves the DoJ's criminal and civil investigations into performance incentive fees that were improperly claimed by the subsidiary between 2013 and 2019, related to maintenance work at certain US military housing installations.
Communities has pleaded guilty to one count of fraud and has agreed to the appointment of an independent compliance monitor for a period of three-years.
The USD65.4 million resolution comprises USD33.6 million in penalties and USD31.8 million in restitution. The Communities subsidiary had cooperated fully with the investigation.
Shares in the London-based infrastructure construction company were up 2.7% at 262.58 pence on Thursday in London.
Since 2019, Balfour Beatty has made several changes to the Communities subsidiary to prevent such events happening again, including the restructuring of the management team and appointment of several key executives, including a chief compliance officer.
"The company apologises for the actions of Communities to all its stakeholders. It has been made clear to all employees that breaches of policies, procedures, or law will not be tolerated. Communities welcomes the appointment of the independent compliance monitor and looks forward to a constructive engagement," Balfour Beatty said.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Balfour Beatty (BBY)