CDM Smith Reaches Agreement with U.S. Government and World Bank in Connection with Foreign Business Activities
BOSTON, Massachusetts – CDM Smith announced today that it has reached agreements with the U.S. Department of Justice (DOJ) and the World Bank Group (WBG) for self-reported improper business activities conducted by a few individuals in the firm’s India and Vietnam operations. The employees associated with these improper business activities were separated from the company following the early findings of CDM Smith’s internal investigations.
The company self-discovered and self-reported potential infractions to DOJ and the World Bank, and has been working with both organizations to resolve these issues. Following an investigation into the disclosed business practices, DOJ has declined to take further action against CDM Smith. In connection with WBG’s review of these matters, CDM Smith will be conditionally non-debarred as a result of their cooperation, during which time the firm will continue to cooperate with WBG.
“CDM Smith has a clear Code of Ethics and core values that drive our behavior every day,” said Stephen J. Hickox, CDM Smith Chairman and Chief Executive Officer. “Any breach of these values or improper business activities is counter to our culture and will not be tolerated.”
DOJ and WBG noted the full cooperation CDM Smith provided during the investigation and the remedial actions the company has taken to enhance its compliance program. CDM Smith has expanded its Ethics and Compliance program, including appointing its first Chief Compliance Officer, to ensure all employees fully understand their role in compliance, and has established channels for reporting any compliance-related concerns.
CDM Smith provides lasting and integrated solutions in water, environment, transportation, energy and facilities to public and private clients worldwide. As a full-service engineering and construction firm, we deliver exceptional client service, quality results and enduring value across the entire project life cycle.