The Channel logo

News

By | Team Register 29th December 2010 11:37

Alcatel-Lucent pays to shut down US bribery probe

Admits dodgy 'consulting'

Alcatel-Lucent has agreed to pay the US government $137m to drop probes of illegal kickbacks it allegedly paid to win contracts in Latin America and Asia.

The payout will close a regulatory investigation by the Securities Exchange Commission, and a criminal investigation by the Justice Department.

"We take responsibility for and regret what happened and have implemented policies and procedures to prevent these violations from happening again," said Alcatel-Lucent's general counsel Steve Reynolds.

The SEC alleges that between 2001 and 2006, prior to its acquisition of Lucent, Alcatel, bribed government officials in Costa Rica, Honduras, Malaysia and Taiwan.

The kickbacks were improperly recorded as consulting fees, according to the regulator.

"Alcatel and its subsidiaries failed to detect or investigate numerous red flags suggesting their employees were directing sham consultants to provide gifts and payments to foreign government officials to illegally win business," the SEC said in a statement.

The firm will pay the settlement out of a special fund it created last year, so it won't affect this year's financial results. ®

comment icon Read 10 comments on this article alert Send corrections

Opinion

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
Steve Bennet, ex-Symantec CEO

Chris Mellor

Enormo security firm needs to get serious about acquisitions

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust