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US Bribes

India’s U.S. ambassador Meera Shankar sought the investigation in May.

By LIFS November 6, 2009 at 12:34 PM

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Five Indian government ministries are investigating allegations that scores of Indian officials were bribed by American firms last year to secure government contracts.

India’s U.S. ambassador Meera Shankar sought the investigation in May following an American report on the Foreign Corrupt Practices Act (FCPA) and Anti-Corruption Enforcement, which identified eight American companies that had bribed Indian officials, including those from the Indian Navy, Indian Railways and the Maharashtra State Electricity Board (MSEB).

In her letter, Shankar cited bribes to Indian navy officials by the York International Corporation for heating and refrigeration equipment: “An employee of the agent admitted to making routine payments to Indian navy officials to secure business for York between 2000 and 2006. Payments were typically less than $1,000, but over time amounted to approximately $132,500 on 215 orders.” Dow Chemicals’ subsidiary DE-Nocil Crop Protection Ltd made “improper payments of approximately $200,000,” including $39,700 to an official in India’s Central Insecticides Board to expedite registration of three of the company’s products, according to Shankar.

Other “improper payments” were made by Mario Covino of Control Companies to the MSEB; by Westinghouse Air Brake Technologies Corporation’s Indian subsidiary, Pioneer Friction Ltd to employees of Indian Railways; and by AT Kearney India to state-owned enterprises, the letter says.

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Comments (1 posted)

Frank Griffin November 27, 2009 at 7:20 PM

I thought that was how the Indian economy worked? When I was in India I knew of this practice for smaller things so it\'s no surprise for it to happen on a larger scale. Corruption needs to be minimized but we have similar corruption even in the good ole USA at high levels. Some of it is even on public display. Take the 300 million bribe to the Democrat Senator from Louisiana. Look at Obama\'s billions in bribes to various groups to prop up his failed health care plans. The list goes on and on and even includes some Republicans.