RTX Enters Deferred Prosecution Agreement
RTX Corporation, formerly known as Raytheon, has agreed to pay $252 million to the U.S. government to resolve charges that it violated anti-bribery laws in connection with securing defense contracts in Qatar. Federal prosecutors announced the settlement on Wednesday, marking the latest development in a high-profile case involving violations of the Foreign Corruption Practices Act (FCPA) and the Arms Export Control Act (AECA).
RTX, a major U.S. defense contractor, has also agreed to forfeit an additional $36.6 million as part of the settlement. The agreement comes after years of investigation into the company’s alleged bribery of foreign officials to secure contracts with the Qatar Emiri Air Force and Qatar Armed Forces.
Allegations of Bribery and Contract Manipulation
According to court documents, Raytheon employees and agents offered and paid bribes to a Qatari official between 2012 and 2016 in an effort to gain favorable treatment in business deals. The bribes allegedly helped Raytheon secure four lucrative additions to an existing contract with the Gulf Cooperation Council (GCC), a regional union of Gulf nations including Qatar, Saudi Arabia, and the UAE.
In addition, the company landed a $510 million sole-sourced contract to build a joint-operations center for the Qatari military. Although Raytheon earned $36.7 million in profits from the GCC contract amendments, the Qatari government ultimately did not move forward with the joint-operations center, which was expected to yield over $72 million in profits.
Court Hearing and Deferred Prosecution
In a brief hearing in Brooklyn federal court, RTX’s legal team waived their right to an indictment and entered a plea of not guilty to charges of bribery and export control violations. The company did not contest the allegations in court documents tied to the settlement.
Under the terms of the deferred prosecution agreement, RTX will be required to demonstrate good behavior and foster a culture of compliance with anti-corruption laws over the next 3½ years. This means the company must implement and maintain strict internal controls to prevent future violations.
Moving Forward: Fostering Compliance
RTX Corporation’s settlement with the U.S. government represents one of the largest penalties in recent years for bribery-related charges in the defense industry. While the agreement helps the company avoid a criminal trial, it underscores the serious consequences for violations of international anti-corruption laws.
As part of its commitment to comply with anti-bribery and export control regulations, RTX will undergo regular assessments to ensure that it fosters ethical business practices and adheres to the laws governing international defense contracts.
