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Five years ago, the Securities and Exchange Commission opened an investigation into possible violations of the Foreign Corrupt Practices Act by a number of major American energy firms operating in Equatorial Guinea. The FCPA bars payments to foreign officials to win business.
It now appears the SEC has dropped the investigation and will not bring charges against the firms involved. This comes from Marathon Oil’s recently released annual report:
By letter dated July 15, 2004, the SEC notified us that it was conducting an inquiry into payments made to the
government of Equatorial Guinea, or to officials and persons affiliated with officials of the government of
Equatorial Guinea. By letter dated February 13, 2009, the SEC further notified us that they completed their
investigation and did not intend to recommend any enforcement action in this matter.
So Marathon and the other energy firms will skate, demonstrating that once again Energy Über Alles is the fundamental core of American foreign policy.
Oh, and what was Marathon’s specific involvement in the case? A holding company controlled by Equatorial Guinea’s dictator, Teodoro Obiang, received a combined stake, worth as much as $29 million, in two joint ventures that Marathon inherited when it bought CMS Energy’s Equatorial Guinea holdings in 2002. Obiang’s holding company put no money down for its initial shares and had received more than $1 million in dividend payments from the two ventures between 2002 and 2003 alone.
How, exactly, did the SEC not construe that as a bribe?
More from Ken Silverstein:
Perspective — October 23, 2013, 8:00 am
How pro-oil Louisiana politicians have shaped American environmental policy
Postcard — October 16, 2013, 8:00 am
A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits
Chance that an American would give up at least one week of life to avoid taking a pill every day:
Iowa urologists reported that only a minor portion of locker-room teasing arises from “the presence of excess foreskin”; most teasing targets small penises.
A pair of Russian film directors asked President Vladimir Putin to invest $18 million in a new restaurant chain intended to drive McDonald’s out of the Russian market. “Every project these days,” a Russian television personality said of the proposal, “must be smothered in patriotic sauce.”
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“Shelby is waiting for something. He himself does not know what it is. When it comes he will either go back into the world from which he came, or sink out of sight in the morass of alcoholism or despair that has engulfed other vagrants.”