With controversies raging on the United States Department of Justice indicting Adani Group for bribing 265 Million Dollars to multiple solar energy companies in India, recent orders from the American authorities, shows that many US firms which gave the bribes in India and other countries, have settled the case by paying more than 300 per cent penalty to avoid prosecution. The US-based research and design firm Moog Inc was caught for bribery of more than half-a-Million Dollars to Hindustan Aeronautics Limited (HAL), Indian Railways settled their case with US Securities and Exchange Commission by paying more than 1.68 Million Dollars.
The IT giant Oracle Corporation, caught for charges of corrupt practices and bribery of more than 6.8 Million Dollars in Indian Railways, and organisations in United Arab Emirates (UAE) and Turkey, settled the case by paying a fine of 23 Million Dollars to the US Treasury as per the orders of US Securities and Exchange Commission. US-based chemical manufacturing company Albemarle Corporation was caught by the US Department of Justice for bribing Indian Oil Corporation and companies in Indonesia and Vietnam for more than 63.5 Million Dollars settled the case by paying a hefty fine of more than 198 million dollars to avoid prosecution.
As per the orders on October 11, 2024, the Securities and Exchange Commission (SEC), Moog Inc through its Indian subsidiary Moog Motion Controls Private Limited (MMCPL) bribed officials in Hindustan Aeronautics Limited (HAL), South Central Railway and Research Designs and Standards Organisation (RDSO) under the Ministry of Railways to bag contracts. “In August 2020, shortly after engaging Agent A, Moog brand was added to the supplier list for an upcoming South Central Railway (SCR) tender notice… then tender notice listed Moog, along with one additional supplier for potential supplier for a specific part in the SCR tender…
“In September 2020, Moog Inc’s India subsidiary MMCPL won the SCR contract for $34,323. In April 2022, Agent A invoiced MMCP for “commission charges,†which several MMCPL employees knew included the improper payments to Government officials to eliminate competition and win contract awards. The payments were falsely recorded as legitimate contractor services,†says the SEC Order, adding that 10% was the bribe commission in the Railways contract.
The SEC order detailing bribery in HAL says in November 2021, Moog bagged $ 1,399,328 valued contract for parts and services related to the April 2021 contract tender. Investigation found that 2.5% commission was received as a bribe by “a HAL official.†As per the eight page order, Moog Inc paid more than 5,00,000 Dollars as bribe for getting contracts in HAL and Railways.
The US Department of Justice’s order dated September 28, 2023 says Albemarle Corporation bagged big contracts in Indian Oil Corporation and companies in Indonesia and Vietnam by corrupt practices and bribing of more than 63.5 million dollars. Albemarle is supplying refining solutions to more than 700 refineries across the world and dealing with Indian Oil Corporation (IOC) from 2009 to 2017. The 46 page order says Albermale started paying bribes to IOC officials to get it removed from the “Holiday List†in 2009.
“Albemarle paid approximately $1.14 Million in commission to India intermediary company relating to Indian Oil Corporation business and obtained approximately $11.14 million in profits on that business between approximately 2009 and 2011,†said the Order. Albemarle was caught for bribery by US authorities in 2017 for 63.5 Million Dollars and then settled the case in September 2023 by paying a hefty fine of more than 198 Million Dollars to avoid prosecution. The 46-page Order imposing fine on Albemarle says the US company also engaged in corrupt practices with an Indian private refinery. However the name of the private refinery is not mentioned in the Order.
The September 27, 2022 dated Order of Securities and Exchange Commission says that the IT giant Oracle Corporation was engaged in corrupt practices and bribery in India, UAE and Turkey. “In 2019, Oracle India sales employees also used an excessive discount scheme in connection with a transportation company, a majority of which was owned by the Indian Ministry of Railways… One of the sales employees involved in the transaction maintained a spreadsheet that indicated $67,000 was the “buffer†available to potentially make payments to a specific Indian SOE (State Owned Entity) official.
“A total of approximately $330,000 was funneled to an entity with a reputation for paying SOE officials and another $62,000 was paid to an entity controlled by the sales employees,†states the 10-page order of Securities and Exchange Commission imposing hefty fine of Rs.23 Million Dollars on Oracle, caught for bribery amount of 6.8 Million Dollars.
The Punished
- Moog Inc caught for bribery of over a half a Million Dollars in HAL, Railways settled the case with United States Securities and Exchange Commission by paying a penalty of more than 1.68 Million Dollars.
- Oracle Corporation, caught for bribery of more than 6.8 Million Dollars in Indian Railways, UAE and Turkey, settled the case by paying a penalty of 23 Million Dollars.
- Albemarle Corporation caught for bribery in Indian Oil Corporation & companies in Indonesia & Vietnam for more than 63.5 Million Dollars settled the case by paying a penalty of more than 198 Million Dollars to avoid prosecution.
