 |
| Attorney General Prosecuting BP |
B.P. Admits Guilty of Criminal Negligence to DOJ
The guilty admission by B.P. to the charge of criminal negligence will cost the company $4.5Billon payable by installments over a period of six years. But there is speculation by some litigation lawyers acting on behalf of businesses and individuals whose lives have been blighted by the disaster that the final cost in the civil courts could reach an additional $23Billion.
However the company have estimated further actions may amount to a lessor sum of $12.5Billion. Either way the financial costs are still mounting and that was anticipated by B.P. who recently sold $35Billon of business assets to fund compensation claims, cleanup costs and government fines for misconduct.
The final criminal court hearing will be held next February 2013 and if the charge of negligence is escalated to a charge of gross negligence then the cost of closure may attract an additional $14Billion above the $35Billon budget the company anticipated. Perhaps the currently uncapped liability will be limited at the February hearing and finally bring about closure for the company and all parties affected. But until then uncertainty about the long term future of the company cannot be absolutely certain.
There is still a question of shared responsibility that has not yet been answered. The businesses involved with B.P. share some of the burden for the consequences of negligence. But the government inspected the Deepwater Horizon platform for Health and Safety certification. Perhaps the federal government should be sharing some of the compensation and criminal court costs because of implied liability and responsibility for the safety of the workforce.
