Balfour given £2.5m fine after SFO investigation

Balfour Beatty has agreed to pay £2.25m in respect of a Civil Recovery Order, plus a contribution towards the costs of the recovery proceedings in full and total settlement of issues triggered by payment irregularities on a project in Egpyt which dates back to 1996.

Balfour identified the payment irregularities in 2005. They relate to its joint venture contract to build the Bibliotheca Alexandrina.

The contract was completed in 2001 by a Balfour business which was discontinued over seven years ago. The project was delivered to the customer's complete satisfaction.

Balfour carried out its own internal investigation of the irregularities identified and self-reported the findings to the appropriate authorities, including the Serious Fraud Office (SFO), in April 2005 for further investigation.

The SFO investigation has determined that there was a failure to keep accurate records within a Balfour subsidiary, that no proceedings should be commenced against any individual or corporate body arising out of the investigation. 

There is no suggestion of any financial gain by any individual employee.

The group has instigated a process designed to eradicate the potential for any repeat occurrence.