NEW YORK — RTX Corporation, the defense firm previously recognized as Raytheon, has reached a settlement with the U.S. government amounting to $252 million to address allegations of bribery tied to contract acquisitions in Qatar, as federal prosecutors announced on Wednesday.
The firm has entered into a deferred prosecution agreement concerning charges that its actions breached the anti-bribery standards established by the Foreign Corrupt Practices Act as well as the Arms Export Control Act. Additionally, it has consented to forfeiting $36.6 million, marking a significant move to rectify its legal standing.
During a short hearing held in federal court in Brooklyn, RTX’s legal representatives waived their entitlement to an indictment and submitted a not guilty plea to the charges presented. They did not contest any of the accusations outlined in the legal filings that accompanied their agreement.
As part of this agreement, RTX is required to exhibit good conduct for the next three and a half years and promote an internal culture that emphasizes ethical standards and compliance with anti-corruption regulations.
According to information revealed in court documents, employees and agents associated with Raytheon allegedly offered bribes to an official from a foreign government from 2012 through 2016 to secure favorable positions in lucrative contracts with both the Qatar Emiri Air Force and the Qatar Armed Forces.
As a result of these actions, the company was able to secure four amendments to a pre-existing contract with the Gulf Cooperation Council, an alliance that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. They also obtained a $510 million sole-source contract aimed at constructing a joint operations center for the Qatari military, as noted in the court documents.
Raytheon’s actions reportedly yielded a profit of roughly $36.7 million from the amendments to the Gulf Cooperation Council contracts. They had projected an earnings exceedance of $72 million from the joint operations center project; however, it was reported that the Qatari government ultimately decided not to proceed with the agreement, as indicated by prosecutors.