Home' Trinidad and Tobago Guardian : September 30th 2015 Contents A17
Wednesday, September 30, 2015 www.guardian.co.tt Guardian
Volkswagen s shocking admission that it
rigged emissions tests in its vehicles is just
the latest example of companies that have
gotten into trouble. Remember Enron, or
Here s some other companies that have
Enron s fraudulent accounting practices
put the energy company out of business in
2001. More than 5,000 people lost their jobs
and more than US$2 billion in employee
pensions were gone. The company s former
CEO Jeffrey Skilling was sentenced to more
than 24 years in prison in 2006, but in 2013
a judge cut a decade off his sentence.
The telecommunications filed for bank-
ruptcy protection in 2002, after disclosing
it had inflated its cash flow by US$3.8 billion.
Former CEO Bernard Ebbers was sentenced
to 25 years in prison in 2005 for leading one
the largest corporate frauds in US history.
Adelphia Communications Corp
Once one of the nation s largest cable
companies, Adelphia collapsed in 2002 after
the company s founder and son were found
to be helping themselves to corporate cash.
A jury convicted both of them of committing
US$1.9 billion in fraud, and they are serving
Tyco International Ltd
Two of the security systems company s
for mer executives, CEO Dennis Kozlowski
and Chief Financial Officer Mark Swartz,
were found guilty in 2005 of giving them-
selves illegal bonuses and forgiving loans to
themselves from 1999 to 2002.
Both have since been freed from prison
Toyota Motor Corp
The US Justice Department fined the
Japanese automaker US$1.2 billion in 2014
to avoid criminal prosecution for hiding
information in a recall case involving defective
floor mats that caused unintended acceler-
ation. Starting in 2009, Toyota recalled more
than ten million vehicles.
More than two years after the Gulf of Mex-
ico oil spill in 2010, BP agreed to plead guilty
to several charges, including lying to Congress
about how much oil was spewing from the
blown-out well. In July BP agreed to provide
billions of dollars in new money to five Gulf
Coast states in a deal the company said would
bring its full obligations to an estimated
US$53.8 billion. The Deepwater Horizon dis-
aster killed 11 rig workers and spewed millions
of gallons of crude that stained beaches,
coated wildlife and polluted marshes.
State-run Brazilian oil firm Petrobras was
accused by federal prosecutors of the biggest
corruption scheme in Brazil s history in 2014,
in allegations that at least US$2 billion in
bribes were paid out over about a decade.
Several top officers resigned, and the crisis
has even pulled leading politicians into ongo-
General Motors Co
Faulty ignition switches in the automaker s
vehicles have been linked to at least 169
deaths. The switch could slip out of the run
position and turn the engine off while driving.
Last week, GM agreed to pay US$900 million
to settle a criminal investigation over the
GM has admitted that some employees
knew about the problem for nearly a decade,
yet cars equipped with the switch were not
recalled until last year.
ANCHORAGE, Alaska---Royal Dutch Shell
has abandoned its long quest to become the
first company to produce oil in Alaska s Arctic
waters, darkening the nation s long-term oil
prospects and delighting environmental
groups that tried to block the project.
After years of effort, Shell is leaving the
region "for the foreseeable future" because it
failed to find enough oil to make further drilling
The company has spent more than US$7
billion on the effort, slogged through a reg-
ulatory gauntlet and fought environmental
groups that feared a spill in the harsh climate
would be difficult to clean up and devastating
to polar bears, walruses, seals and other wildlife.
Shell persisted in hopes of finding a big
new source of oil revenue and establishing
expertise and a presence in the Arctic, which
geologists estimate holds a quarter of the
world s undiscovered conventional oil and gas.
The drilling project also held the hopes of
Alaska, which has seen oil production and
revenues decline sharply in recent years, and
the US oil industry, which looked to Alaska s
offshore Arctic as the next source of oil big
enough to keep the country among the top
three oil producers in the world along with
Saudi Arabia and Russia.
But Shell drilled to 6,800 feet about 80
miles offshore in the Chukchi Sea off Alaska s
northwest coast and just didn t find much.
"Shell continues to see important exploration
potential in the basin, and the area is likely
to ultimately be of strategic importance to
Alaska and the US," Marvin Odum, director
of Shell s operations in the Americas, said in
a statement issued late Sunday.
"However, this is a clearly disappointing
exploration outcome for this part of the basin."
Known in the industry as turning up a "dry
hole," it s common for exploratory drilling to
find little to no oil, especially in formations
that have not been explored much in the past.
But Shell s failure is notable because it was
the only active drilling project in the sea, which
Shell officials had called "a potential game-
changer," a vast untapped reservoir that could
add to America s energy supply for 50 years.
Though countries are pushing for cleaner
energy sources, analysts predict that the world
will need another ten million barrels a day
between 2030 and 2040 to meet growing
demand, especially in developing countries.
The world now consumes 93.6 million barrels
of oil every day. (AP)
Dave Burke, vice
about the new
Google Nexus 6P
during an event on
Tuesday in San
is countering the
release of Apple's
latest iPhones with
new version of
designed to steer
even more of its
Companies that behaved badly
Artic failure dims oil prospects
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