Company and Its Subsidiaries to Cough Up US$92 Million
07 January 2011
The US Department of Justice (DoJ) has announced that Alcatel-Lucent SA (Alcatel) and three of its subsidiaries have agreed to pay US$92 million to settle an investigation into alleged violations of the Foreign Corrupt Practices Act. Alcatel allegedly pursued business opportunities around the world through its subsidiaries and regularly used consultants and third-party agents to pay millions of dollars in bribes to foreign government officials in order to retain business in Costa Rica, Honduras, Malaysia and Taiwan. As a result of this corruption, Alcatel allegedly secured three contracts in Costa Rica worth more than US$300 million, amongst others, and made profits exceeding US$23 million. In addition to the monetary penalty, Alcatel and its subsidiaries will also conduct an enhanced compliance program and also “retain an independent compliance monitor”.
DoJ’s media release (27 December 2010)