Alstom fined $42m in Swiss bribery probe
Paris, November 22, 2011
Swiss authorities have fined French power and engineering group Alstom 38.5 million Swiss francs ($42 million) for corporate negligence, after a global bribery probe.
Alstom said on Tuesday it was fined 2.5 million francs for negligence in three cases involving company officials in Latvia, Malaysia and Tunisia. It must also pay around 36 million francs, corresponding to estimated profit related to the cases.
'In two out of these three cases, Alstom itself would appear to be a victim of the actions of some of its employees, who would have benefited from kickbacks, 'enriching themselves at the expense of the company',' Alstom said.
'In the third one, the company was simply a subcontractor of a consortium,' Alstom said, adding it would not challenge the decision and that the investigation had been closed.
The probe began in October 2007 and sought to determine whether Alstom and some of its units had violated rules prohibiting the payment of foreign civil servants to win commercial contracts.
The investigation concluded there was an 'absence of any system or so-called slush funds used for bribery of civil servants to illegally obtain contracts', Alstom said.
Alstom shares were up 0.7 percent at 22.9050euros. ($1 = 0.9184 Swiss franc) - Reuters