Firm faces £8m fine over bribes

Innospec Ltd conspired to give corrupt payments totalling more than $8.5m (5.6m) to public officials in return for Indonesian government contracts between February 2002 and December 2006.

The corruption involved the supply of Innospec's anti-knock fuel

additive Tetraethyl Lead (Tel), a major source of income for the

company before health and environmental concerns led to its disappearance from the United States and Europe by 2000.

Lord Justice Thomas, sitting at London's Southwark Crown Court, said the maximum sentence he would pass would be the sterling equivalent of a fine of $12.7m, 8.3m, the maximum amount thought to be available if the company is to remain viable.

But he told the court: "It's not going to be less than $12.7m, it can't be. It will be capped at $12.7m."

Any higher amount would threaten almost 400 jobs at Ellesmere Port on Merseyside, the court heard.

But Lord Justice Thomas said: "To mark the gravity of corruption of a foreign government, massive fines seem to me to be absolutely essential."

He said corrupting a government was "almost at the top of the criminal calendar for a company".

The guilty plea was the culmination of more than two years of transatlantic negotiations between the UK's Serious Fraud Office, the US Department of Justice, the US Securities and Exchange Commission and Innospec.

It also involves the US arm of the firm pleading guilty in the US District of Columbia to bribing foreign officials in connection with the United Nations' Oil for Food programme in Iraq.

It is the first time such a global deal has been arranged, and the proposed agreement prompted the wrath of judge Geoffrey Rivlin QC, the Honorary Recorder of Westminster, who described it as "deeply wrong" given the "massive criminality" at an earlier hearing.

Lord Justice Thomas adjourned the sentencing until a date to be set next week.