Probe in bribery scam leads to 14 shell firms

ED has attached properties of ex-Goa CMs linked to the case

Panaji, 30/06/2016: Former CM Digambar Kamat appeared before Enforcement Director in JAICA bribery case at Patto Panaji on Thursday.He was at ED from 10AM TO 6PM for the inquiry

.Photo: Atish Pomburfekar.

Panaji: The Enforcement Directorate’s (ED) probe into the Louis Berger bribery scam led to 14 shell companies that were used as channels to transmit bribes worth crores of rupees from the US-based consultancy firm to Goa politicians and authorities via Louis Berger officials, ED sources said on Friday.

On Thursday, the ED, which is investigating the case under Prevention of Money Laundering Act (PMLA), 2002, had said that it had attached properties of Digambar Kamat and Churchill Alemao (former Chief Ministers of Goa and MLAs of the Congress and the Nationalist Congress Party), worth over ₹10 crore to ₹15 crore.

Mr. Kamat, Mr. Alemao, and top Goa government officials, like Anand Wachasundar (retired), have been accused of allegedly accepting $976,630 in bribe in 2010 from officials of the firm who intended to secure implementation rights of a water and sewerage project worth ₹1,031 crore and funded by the Japan International Cooperation Agency (JICA).

Sources in the ED told

The Hindu that detailed questions had been sent to the former senior vice president of the firm, in the form of a letter rogatory (LR).

An ED official said, “A letter rogatory has been sent for further investigation against James McClung, who is presently imprisoned in the U.S.A.”

A senior official added, “Louis Berger officials created these 14 shell companies through which money [amounting nearly] ₹4 crore was systematically laundered to pay off those indicted in the scam.”

It was also revealed that a bribe of around ₹2 crore was initially agreed upon, but was later hiked to ₹4 crore after negotiations between local politicians and officials of the firm.

The Goa Crime Branch, which began it’s probe in the case after filing an FIR over two years ago, had arrested some top officials linked to the project, senior Louis Berger employees, a hawala dealer, and Mr. Alemao, who are all presently out on bail.

Mr. Kamat who has managed to escape arrest so far, has been charged with Section 120B (criminal conspiracy ), and Section 201 (tampering with evidence) of the Indian Penal Code, and other sections of the Prevention of Corruption Act. He has filed an anticipatory bail application in the Supreme Court.

Mr. Kamat has been charge-sheeted as the prime conspirator, followed by Mr. Alemao and Mr. Wachasundar. The Crime Branch has also filed a supplementary charge-sheet in the case.

On Friday, a senior Goa Crime Branch official said the ED filed a Enforcement Case Information Report and began a separate probe since the crime branch was not competent in probing the money laundering aspect.