08:31 GMT +316 December 2018
Listen Live
    US dollars

    US Firm Bribed Indian Officials - US Justice Department

    © Sputnik / Mihail Kutusov
    Asia & Pacific
    Get short URL
    0 30

    The Indian government has ordered an investigation against Boston-based consultancy firm CDM Smith that allegedly paid $1.18 million to officials of National Highways Authority of India (NHAI) to bag several contracts between 2011 and 2015.

    NEW DELHI (Sputnik) — Nitin Gadkari, India's Minister for Road and Transport, has asked the NHAI chief to initiate a proper investigation of the matter after CDM Smith admitted before the US Justice Department that it had paid kickbacks through its employees and agents to government officials in India, in exchange for highway construction supervision and design contracts.

    The Criminal Division of the US Justice Department said that through these contracts, CDM Smith earned a net profit of $4.037 million.

    "The bribes generally were two-four per cent of the contract price and paid through fraudulent subcontractors, who provided no actual services and understood that payments were meant to solely benefit the officials," it said.

    Apart from road contract, the company also bribed officials in the state of Goa for a water project.

    "In addition, CDM Smith's division responsible for India and CDM India paid $25,000 to local officials in the Indian state of Goa in relation to a water project contract. All senior management at CDM India (who also acted as employees and agents of CDM Smith and signed contracts on behalf of CDM Smith, including CDM India's country manager) were aware of the bribes for CDM Smith and CDM India contracts, and approved or participated in the misconduct," the Justice Department said. The company has now agreed to disgorge $4.37 million, which it earned as net profit due to the bribery.

    Tags:
    Bribes, US Justice Department, Highways Authority of India (NHAI), United States, India
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik