PG&E, cont’d

This one isn’t in the print edition.  But it’s an interesting development.

“Prosecutors Sharply Reduce Potential PG&E Penalties From Pipeline Explosion,” The Wall Street Journal, August 3, 2016.

PG&E is being sued for the explosion of a gas pipeline in San Bruno in 21010 that killed 8.  I follow this case because of PG&E’s inability to locate vital records related to more than half of the 212 miles of pipeline.  Records of  inspections required by regulation and such.

In day four of jury deliberations in the criminal trial against PG&E, the government reduced the amount of fines it was seeking from $562 million to $6 million.  The larger amount was the calculation of twice the amount of money PG&E saved by not doing what the regulations required.

Why?  What does this say about how important compliance it?  Will any corporate executives go to jail? Or be sued by the shareholders?

 

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Filed under Business Case, Compliance, Compliance, Controls, Culture, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Management, Risk

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