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Article

22 Dec 2014

Author:
Alan Tovey, The Telegraph

US authorities fine Alstom over corruption

"Alstom fined $772m in US for 'brazen' and 'astounding' foreign bribery schemes"

A record fine of $772m has been imposed on French company Alstom by US authorities to settle allegations the business paid bribes to win contracts. The company, which makes trains and equipment for the power and energy industries, on Monday agreed to pay the penalty following claims it bribed government officials to win contracts in countries including Indonesia, Saudi Arabia and Egypt. The fine – the largest ever in the US under the Foreign Corrupt Practices Act – came after Alstom agreed to plead guilty to violating internal controls and record-keeping regulations. According to US prosecutors, Alstom paid a total of $75m in bribes to secure $4bn in projects around the world with a profit of approximately $300m. "Alstom's corruption scheme was sustained over more than a decade and across several continents," said Deputy Attorney General James Cole. "It was astounding in its breadth, its brazenness and its worldwide consequences."...Patrick Kron, Alstom chief executive, said: “There were a number of problems in the past and we deeply regret that. However, this resolution allows Alstom to put this issue behind us and to continue our efforts to ensure that business is conducted in a responsible way, consistent with the highest ethical standards.”