Pinsent Masons has advised on a £5.6m Bribery Act settlement by a Scottish drilling company, in the first case involving self-reporting by a company under the new legislation.

The settlement comes after oil and gas services company Abbot Group this July admitted to Scotland's Crown Office and Procurator Fiscal Service (COPFS) that it had benefited from corrupt payments made in connection with a contract between 2006 and 2007, entered into by one of its overseas subsidiaries and an overseas oil and gas company.

The payments came to light in May last year following an investigation by an overseas tax authority.

The £5.6m agreement with the Civil Recovery Unit (CRU), which represents the profit on the contract, means there will be no criminal investigation into Abbot or its subsidiaries.

Pinsents represented Abbot, fielding a team which included partner Tom Stocker, senior associate Willie Park, and associate Lloyd Embleton. For court proceedings, the firm instructed Compass Chambers' Peter Gray QC.

Abbot general counsel Louise Andrew confirmed none of the personnel involved in the payments remain in the group, and said that the company was "deeply disappointed this improper payment took place".

"Civil settlement is only offered if Crown Office is satisfied that the company operates transparently, has sound anti-bribery systems in place and is fully committed to compliance. KCA Deutag [the trading name of Abbot] is committed to anti-bribery compliance and creating a corporate culture in which bribery has no place," she said.

Andrew added the company had invested considerable resources into developing anti-bribery compliance following the incident, and that the self-report is evidence that compliance at Abbot "is sufficiently sophisticated to detect irregularities and that we are committed to taking appropriate action".

In a statement, Pinsents' Stocker said: "The civil settlement was reached after the self-report and the facts and circumstances of the case were thoroughly scrutinised by the Crown Office and Procurator Fiscal Service and the Civil Recovery Unit."

Ruaraidh Macniven, head of the CRU said: "[The self-reporting initiative] enables responsible businesses to draw a line under previous conduct and, providing the criteria are met, affords the possibility of a civil settlement. Self-reporting is an important way to ensure that corruption is exposed and that companies put in place effective systems to prevent it."

The recovered funds will be remitted to the Scottish Consolidated Fund, which invests cash from criminal activities in sporting, cultural, community mentoring projects and sports facilities for young people.

The news comes after the Serious Fraud Office this October reviewed its Bribery Act guidance, updating sections on self-reporting, facilitation payments, gifts and hospitality.

Click here for more details from the Crown Office and Procurator Fiscal Service.

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