Britain’s leading fraud prosecutor on Tuesday brought corruption charges against Alstom UK for allegedly paying a bribe of over €3 million to Delhi Metro Rail officials in 2001.
In its submission to the Westminster Magistrates’ Court, Britain’s Serious Fraud Office alleged that certain directors of Alstom “did corruptly give or agree to give payments to an official or officials or other agents” of the DMRC to secure a contract for a train control, signalling and telecommunications system for the Delhi Metro Phase 1 (‘SYS 1’).
SYS1 was a major contract awarded at the infancy of the Delhi metro project and has subsequently helped Alstom bag similar contracts as the metro expanded.
The company is currently involved in the Chennai and Bangalore metro projects.
According to the SFO, the bribes were disguised as payments in exchange for consultancy services.
“The sum of Rs. 19,895,000 disguised as payments in respect of a Consultancy Agreement with Indo European Ventures Pte Ltd dated 12th September 2001 and the sum of €3,131,600 disguised as a payment in respect of a Consultancy Agreement with Global King Technology Ltd. dated 3rd May 2002,” the charge reads.
These payments, according to SFO, were intended to be “inducements or rewards for showing favour to the Alstom Group in relation to the award” of the DMRC contract.
The charges filed on Tuesday are part of a larger anti-corruption probe against Alstom for projects in Poland and Tunisia as well.
