General Electric Company has agreed to pay 23.4 million dollars to settle charges that its subsidiaries engaged in a 3.6-million-dollar kickback scheme with Saddam Hussein's regime to win lucrative contracts, US regulators announced Tuesday, dpa reported.
The US Securities and Exchanged Commission alleges that two GE subsidiaries and two others it since acquired rewarded Saddam's regime with cash, computer equipment, medical supplies and other services in exchange for contracts and in violation of international sanctions.
UN Security Council enacted sanctions on Iraq in 1990 following the invasion of Kuwait. In 1995, the Security Council created the Oil-for-Food programme to ease the burden on the Iraqi people. The programme allowed the Iraqi government to sell oil in order to purchase food and other humanitarian needs. It was in place until 2003.
The SEC said the GE violations occurred from 2000 to 2003. GE agreed to pay a 1-million-dollar penalty and 22.4 million dollars in profits plus the interest believed to have been generated from the kickback scheme.