French company Alstom, which has given the lowest quote at Rs 633 crore for Kochi Metro coaches, has a chequered history with corruption allegations, ranging from that of Delhi Metro to power and transport projects in Indonesia, Poland and Tunisia, against them. While chief minister Oommen Chandy has gone to town on how the Metro saved Rs 174 crore following the opening of tender in New Delhi on Monday, the company has a dodgy history and an Alstom official (in the most recent case) had pleaded guilty for his participation in a scheme to pay bribes to foreign government officials following charges raised by the US Department of Justice on July 17. On February 26 this year, TOI Delhi bureau reported that Britains Serious Fraud Office (SFO) had approached the Central Bureau of Investigation (CBI) to verify allegations that two Indians were bribed 3 million pounds (more than Rs 30 crore) by a private company to bag a Delhi Metro contract. Alstom, the multinational corporation named by SFO, provided the train control and signalling systems for Delhi Metro. It is alleged that Alstom employed a Hong Kong-based private company to act as consultants for the Delhi Metro. While SFO investigated corruption charges against Alstom in Britain they stumbled upon details indicating that the company allegedly paid bribes worth 3 million pounds to ensure that the Delhi Metro contract was swung in its favour. According to a Bloomberg report on July 24, Britians SFO has announced six charges against the companys UK subsidiary over offences that allegedly occurred in relation to large transport projects in India, Poland and Tunisia. The alleged offences are said to have taken place between June 1, 2000 and November 30, 2006 and is related to transport projects in the above said countries. Apart from the United Kingdom, the company is being investigated by authorities in the US and Brazil. It is pointed out that Alstom has paid more than $53 million over claims its employees paid bribes in at least five countries. In 2004, auditors for the Swiss Federal Banking Commission unearthed documents showing possible corrupt payments, and since then Alstom has been investigated by multiple countries. As part of a 2012 resolution with the World Bank, which sanctioned Alstom for improper payments in Zambia, two of its units were barred from public tenders financed by the bank for three years, according to Bloomberg report. On July 18 this year, the media reported that a former Alstom executive pleaded guilty in US to charges that he took part in a scheme to bribe foreign government officials to win a power contract in Indonesia. The news agency said that to conceal bribes, the defendants retained two consultants purportedly to provide legitimate consulting services. Meanwhile, a senior official with DMRC said that the details regarding tender process for coaches have to be kept confidential. This is a confidential process. And DMRC has not yet awarded the tender. Leaking confidential documents into public domain is not a healthy process, said a DMRC official. KMRL spokesperson refused to comment on the issue. With Alstom expected to deliver coaches for Koch Metro, questions are now being raised on Kochi Metro Rail Ltds (KMRL) insistence on relaxing tender specifications and retendering the coach procurement. Bribes and the French firm * On February 26 this year, Britains Serious Fraud Office (SFO) approached the CBI to verify allegations that two Indians were bribed 3 million pounds (more than Rs 30 crore) by a private company to bag a Delhi Metro contract * According to report on July 24, Britians SFO has announced six charges against the companys UK subsidiary over offences that allegedly occurred in relation to large transport projects in India, Poland and Tunisia * Alstom is said to have paid more than $53 million over claims its employees paid bribes in at least five countries * In 2004, auditors for the Swiss Federal Banking Commission unearthed documents showing possible corrupt payments by Alstom * As part of a 2012 resolution with the World Bank, which sanctioned Alstom for improper payments in Zambia, two of its units were barred from public tenders financed by the bank for three years
Posted on: Wed, 13 Aug 2014 06:24:45 +0000
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