UK SFO goes after subsidiary of US firm over Indonesian corruption

The website of the UK Serious Fraud Office reported:

Innospec Limited, a UK subsidiary of Innospec Inc, a US NASDAQ listed company, has appeared before District Judge Timothy Workman at City of Westminster Magistrates’ Court in response to a summons from the court on an application from the Serious Fraud Office alleging conspiracy to corrupt, contrary to Section 1 of the Criminal Law Act 1977. This case concerns bribery on a significant scale by Innospec and its agents in Indonesia.

The charge relates to Innospec Limited, that between 14 February 2002 and 31 December 2006, conspired with certain of its directors, executives, employees and agents to give or agree to give corrupt payments [contrary to section 1 of the Prevention of Corruption Act 1906] to public officials and other agents of the Government of Indonesia as inducements to secure, or as rewards for having secured, contracts from the Government of Indonesia for the supply of Tetraethyl Lead (“TEL”) to the said Government of Indonesia by Innospec Limited.

The case was transferred to Southwark Crown Court pursuant to section 51 Crime & Disorder Act 1998 where Innospec Ltd will appear next on 4 March 2010. Details of the alleged offences will be available at that time Innospec Limited of Oil Sites Road, Ellesmere Port, Cheshire manufactures an anti knock fuel additive called TEL.

The case is very interesting and the nagging feeling that the writer has is pot calls kettle black.  Major UK business interests have had a long history in Indonesia.  Indonesia has a long and notorious history of corrupt practices, embezzlement, graft and fraud.

While we have no views or knowledge on the merits or otherwise of this particular case under the UK laws that exist today, counsel for the defence may wish to consider the extent to which Her Majesty's servants in Indonesia were a part of the problem in the first place.

The UK company's address is Oil Sites Road.  Oil is a good place to start.