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Japan's Marubeni fined over Indonesia graft probe: US

Japanese trading company Marubeni Corporation has agreed to pay an $88-million fine after admitting bribing Indonesian government officials to secure a lucrative power project, the US Justice Department said Wednesday

The Jakarta Post
Washington
Thu, March 20, 2014 Published on Mar. 20, 2014 Published on 2014-03-20T13:18:30+07:00

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 Japan's Marubeni fined over Indonesia graft probe: US

J

apanese trading company Marubeni Corporation has agreed to pay an $88-million fine after admitting bribing Indonesian government officials to secure a lucrative power project, the US Justice Department said Wednesday.

A Justice Department statement said Marubeni and employees from consortium partner Alstom had bribed a high-ranking Indonesian member of parliament and members of the country's state-owned electricity company to secure a $118-million contract known as the Tarahan project.

Payments totalling several hundred thousand dollars were funnelled to corrupt officials in Indonesia via bogus consultants hired specifically to disperse the bribes, the statement said.

Two officials from the US subsidiary of French firm Alstom have already pleaded guilty to US charges in connection with the scam, which began in 2002.

Two other Alstom executives face charges but have not yet entered pleas.

"Marubeni and its co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials," the Justice Department said.

Money was paid into a bank account in Maryland before being transferred to Indonesia.

Marubeni pleaded guilty to an eight-count indictment filed in federal court in Connecticut on Wednesday.

The company admitted once count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the same law.

The $88-million fine is set to be ratified at a sentencing hearing on May 15.

"Companies that wish to do business in the United States or with US companies must adhere to US law, and that means bribery is unacceptable," said FBI official Valerie Parlave.

Justice Department assistant Attorney General Mythili Raman said Marubeni had paid the price for trying to hide involvement in the scam.

"Marubeni pleaded guilty to engaging in a seven-year scheme to pay - and conceal - bribes to a high-ranking member of Parliament and other foreign officials in Indonesia," Raman said.

"The company refused to play by the rules, then refused to cooperate with the government's investigation.

"Now Marubeni faces the consequences for its crooked business practices in Indonesia." (***)

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