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BP suspended from new U.S. government contracts

By The Associated Press

This article was published November 28, 2012 at 9:20 a.m.

— The Obama administration put a temporary stop to new federal contracts with British oil company BP on Wednesday, citing the company’s “lack of business integrity” and criminal proceedings stemming from the Deepwater Horizon disaster in 2010.

The action by the Environmental Protection Administration won’t affect current contracts but prevents BP and its affiliates from new government contracts “until the company can provide sufficient evidence to EPA demonstrating that it meets federal business standards,” the agency said.

“EPA is taking this action due to BP’s lack of business integrity as demonstrated by the company’s conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response,” the agency said in a statement.

In London, BP said it had no immediate comment but expected to make a statement later Wednesday.

The EPA suspensions were standard practice when a criminal case raises responsibility questions about a company. The suspension came the same day two BP rig supervisors and a former executive were scheduled to be arraigned on criminal charges stemming from the deadly explosion and the company’s response to the resulting oil spill in the Gulf of Mexico.

BP announced earlier in November that it will plead guilty to manslaughter, obstruction of Congress and other charges and pay a record $4.5 billion in penalties to resolve a Justice Department probe of the disaster. Attorneys for BP and the Justice Department plan to meet with a federal judge in December to discuss a date for pleading guilty.

Read tomorrow's Arkansas Democrat-Gazette for full details.

Comments on: BP suspended from new U.S. government contracts

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Displaying 1 - 3 of 3 total comments

Jackabbott says... November 28, 2012 at 1:17 p.m.

ok, but what about all the Wall Street firms that tore the economy of the countr;y into sheds. Are they too politically connected to Obama and Holder??????

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RonalFos says... November 28, 2012 at 1:43 p.m.

No Wall Street is hiding behind Republicans. That's why they tried so hard to beat Elizabeth Warren in Mass. She is going to be going after Wall Street and Banks.

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NONSHEEPLE says... November 28, 2012 at 1:58 p.m.

A good start... Keep up the good work for a change.

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