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Alcoa admits corrupt deals with Bahrain, agrees to $384mn settlement

Published time: January 10, 2014 13:58
Reuters / Alessandro Bianchi

Reuters / Alessandro Bianchi

The world’s largest alumina producer Alcoa World Alumina has agreed to a $384 million settlement with US authorities, after admitting paying millions of dollars in bribes to Bahraini officials to secure long term contracts with state-owned Alba.

The biggest network of alumina production facilities, Alcoa World Alumina, admitted that in 2004 it corruptly secured contracts to supply alumina, that’s used to make aluminium, to Alba through a middle man in London, the Financial Times reports.

The charge brought by the US Department of Justice (DoJ) says that such a “sham distributorship” boosted the prices of Alcoa products by about $188 million between 2005 and 2009.

It also said that the intermediary “used the mark-up to pay tens of millions in corrupt kickbacks to Bahraini government officials, including senior members of Bahrain’s royal family”.

The revelation comes at a time when the Crown Prince, Sheikh Salman bin Hamad al-Khalifa, is trying to fight corruption.

The illegal payments involved banks across the world, including Guernsey, Luxembourg, Liechtenstein and Switzerland, the DoJ said. The London middleman and Bahrain officials used “offshore bank accounts, including accounts held under aliases”, the regulator added.

The world aluminium market has been struggling, and Alcoa released disappointing results for the fourth quarter of 2013, so the DoJ said it took into account Alcoa’s “current financial condition” when calculating the size of the penalty.

Alcoa will pay 85 percent of the $223 million in fines, as well as other penalties over the coming four years.

Comments (3)

 

D F 12.01.2014 11:16

Henry Eagleboy 11.01.2014 19:08

Corporate criminals run the world...!

  


Because WE the people accept it by doing NOTHING.
And now it is reaching levels that are very difficult to ignore and why TRUTH is an enemy to be punished labeled with a word (Whistle blower) insinuating a tattle tale - not an honest man trying to do the right thing or a TRUTH teller
We as a race of peoples only tend to CARE when it affects us personally.
Who even considers how many others suffered (slaughtered) for the gallon of gas they are pumping into their beautiful SUV?
We are a very ignorant society

 

D F 12.01.2014 11:06

The revelation comes at a time when the Crown Prince, Sheikh Salman bin Hamad al-Khalifa, is trying to fight corruption.?
The very word Royal is a corruption to truth PRINCE SALMON-
There is no such substance as royal DNA--- silly man.
If your SUBJECTS ever wake to this Truth - you’re in deep poo poo.
I have a notion no one will do any jail time in the class system of law- those who are restricted to them and those that BUY immunity. Just a notion mind you- and this fine is probably far less than the profiting. But don’t tell anyone -let’s keep it a secret.

 

Henry Eagleboy 11.01.2014 19:08

Corporate criminals run the world...!

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