Defense contractor Raytheon agrees to pay $252M penalty to resolve Qatar bribery charges

RTX Corporation, the defense contractor formerly known as Raytheon, has agreed to pay the U.S. government $252 million to resolve criminal charges that it paid bribes to win contracts with Qatar.

NEW YORK– RTX Corporation, the defense contractor formerly known as Raytheonhas agreed to pay the US government $252 million to resolve criminal charges alleging it paid bribes to win contracts QatarFederal prosecutors said Wednesday.

The company entered into a deferred prosecution agreement on charges of violating the anti-bribery provision of the Foreign Corruption Practices Act and the Arms Export Control Act. The company has also agreed to forfeit $36.6 million.

During a brief hearing in federal court in Brooklyn, RTX’s attorneys waived their right to an indictment and pleaded not guilty to both charges. They did not object to the allegations in court documents filed in connection with the agreement.

Under the agreement, the company will have to demonstrate good conduct and foster a culture of ethics and compliance with anti-corruption laws over the next three and a half years.

According to court documents, between 2012 and 2016, Raytheon employees and agents offered and paid bribes to a foreign official to gain an advantage in securing lucrative business deals with the Qatar Emiri Air Force and the Qatar Armed Forces.

The company subsequently managed to win four additions to an existing contract with the Gulf Cooperation Council – a regional union of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – and an exclusive contract worth 510 million to build a joint operations center for the Qatari military, according to court documents.

Raytheon made about $36.7 million in profits from the Gulf Cooperation Council contract additions and expected to earn more than $72 million from the joint operations center, but the Qatari government ultimately did not go through with the deal, prosecutors said.