Will there ever be an end to the Oil-for-Food abuses? Flowserve Corporation announced last Thursday that it will pay nearly $10.6 million to the U.S. Securities and Exchange Commission and the U.S. Department of Justice for violating the United Nation’s Iraq Oil-for-Food humanitarian program. A Dutch and French-based subsidiary of the company, Flowserve Pompes SAS, came under investigation by the the SEC and DOJ in 2006 for allegedly paying kickbacks to Iraqi government officials. The kickbacks were were worth approximately 10 percent of the price of the contract, or just over $600,000.

Because of Flowserve’s “thorough review of the improper payments and the company’s implementation of enhanced compliance policies and procedures” the DOJ will delay prosecuting the company for three years, according to a DOJ press release. If Flowserve and its subsidiaries play nice during that time, the DOJ “will dismiss the Criminal Information.”

The penalty wasn’t a surprise for the company (it had predicted a fine of $11 million in its 2007 third quarter report with the SEC), and stock value hasn’t responded to the report. In fact, the day of the announcement, Flowserve shares closed 12 cents higher than it opened.