BP executives may face jail for manslaughter over Gulf disaster

By David Usborne in New York
Wednesday, 30 March 2011
REUTERS


Managers of BP could face manslaughter charges when prosecutors in the United States finally conclude their criminal investigation into the Deepwater Horizon explosion in the Gulf of Mexico last April that killed 11 rig workers and triggered the worst oil spill in US history.

The mere possibility that these and other charges may now be on the table at the US Justice Department, first reported last night by Bloomberg News, put new pressure on the shares of the energy giant.

The sources, who spoke on condition of anonymity, did not identify those managers at risk of individual charges. Involuntary manslaughter, if proven, could carry sentences of up to 10 years in prison. They also stressed that no decisions had been made and the criminal inquiry is still some way off being wrapped up.

Suggestions that prosecutors are also considering opening a perjury investigation implies that investigators are re-examining testimony given by BP executives, including that of former CEO, Tony Hayward, during congressional hearings. Some lawmakers suggested that Mr Hayward, who became a bogeyman in the US media and was replaced last summer by a US national, repeatedly stonewalled when faced with their questions. Any suggestion that he gave false testimony would be more serious, however.

After the spill, BP said it would take full responsibility and was ready to implement the environmental clean-up. Facing a barrage of criticism from the White House, the company also agreed to set up a $20bn fund to compensate Gulf Coast residents.

The US Justice Department said last June that it would open both civil and criminal investigations. BP is already budgeting for additional fines that the US government will levy on it when all the investigations are concluded. If the company is found guilty of gross negligence, which might be implied were manslaughter charges indeed to be filed, those fines could quadruple to as much as $21bn.

A decision to prosecute individuals within BP as well as the company itself would be an unusual step since it is normally the corporations themselves that are targeted. It would be seen as further evidence of the Obama administration's determination to take the toughest line possible with the UK-based company and make an example of it in this case.

"They typically don't prosecute employees of large corporations," noted Jane Barrett, a law professor at the University of Maryland. "You've got to prosecute the individuals in order to maximise, and not lose, the deterrent effect."

Shortly after the accident, the US Attorney General, Eric Holder, signalled he would encourage an aggressive approach. "We will closely examine the actions of those involved in the spill. If we find evidence of illegal behaviour, we will be extremely forceful in our response," he said. Other US officials also said at the time that individuals could eventually be targeted for criminal charges.

Claimants' data on lost BP laptop

(UKPA) – 11 hours ago
A BP employee lost a laptop containing personal data belonging to thousands of Louisiana residents who filed compensation claims after the Gulf of Mexico oil spill, the company said.
BP spokesman Curtis Thomas said the oil giant sent letters to about 13,000 people whose data was stored on the computer on Monday, notifying them about the potential data security breach and offering to pay for their credit to be monitored. The company also reported the missing laptop to law enforcement agencies, he said.
The laptop was password-protected, but the information was not encrypted, Mr Thomas said.
The data included a spreadsheet of claimants' names, social security numbers, phone numbers and addresses. But Mr Thomas said the company did not have any evidence that claimants' personal information had been misused.
"We're committed to the people of the Gulf Coast states affected by the Deepwater Horizon accident and spill, and we deeply regret that this occurred," he said.
The data belonged to individuals who filed claims with BP before the Gulf Coast Claims Facility took over the processing of claims in August. BP paid about £250 million in claims before the switch. As of yesterday, the GCCF had paid around £2.2 billion to 172,539 claimants over the rig explosion last April that killed 11 workers.
Mr Thomas said no one would have to resubmit a claim because of the lost data.
The employee lost the laptop on March 1 during "routine business travel", said Mr Thomas, who declined to elaborate on the circumstances. "If it was stolen, we think it was a crime of opportunity, but it was initially lost," he said.
BP is offering to pay for claimants to have their credit monitored by Equifax, an Atlanta-based credit bureau.
Asked why nearly a month elapsed before BP notified residents about the missing laptop, Mr Thomas said, "We were doing our due diligence and investigating."