GE pays $23M to settle Iraq kickback charges

General Electric Company refuses to admit or deny wrongdoing in the settlement


Associated Press
July 27, 2010 6:56PM (UTC)

General Electric Co. will pay $23.4 million to settle federal charges that some of its subsidiaries paid illegal kickbacks to the government of Saddam Hussein in order to win contracts under a U.N. program.

The Securities and Exchange Commission says GE subsidiaries gave cash, computers, medical supplies and other goods to the Iraqi health and oil ministries from 2000 to 2003.

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The SEC says the kickbacks were in return for contracts to supply medical and water purification equipment under the United Nations' oil-for-food program, which provided humanitarian aid to prewar Iraq.

GE says it agreed to pay a $1 million penalty and give up about $22.5 million in profit and interest earned from the transactions. The company does not admit or deny wrongdoing under the settlement.


Associated Press

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