Alstom says it is cooperating with US DOJ in bribery probe

French engineering giant Alstom said it is "cooperating closely, actively and in good faith" with the US Department of Justice (DOJ) in the investigation over allegations that the company has bribed officials to win energy projects in Asia including Indonesia.

Robert Luskin, Alstom's principal outside legal advisor in the USA, stated in a statement Thursday that a Bloomberg article published on 27 March 2014, regarding the investigation of Alstom by the DOJ, does not accurately reflect the current situation.

"In the course of our regular consultations, the DOJ has not identified any on-going shortcomings with the scope, level, or sincerity of the company's effort," Luskin said.

"The discussions with the DOJ have not evolved to the point of negotiating a potential resolution of any claims. Any effort to estimate the size of any possible fine is sheer speculation, as would be any comparison with other cases that have recently been resolved. Alstom has agreed to focus its efforts on investigating a limited number of projects that we and the DOJ have identified in our discussions. We are working diligently with the DOJ to answer questions and produce documents associated with these specific projects so that we can address any possible improper conduct".

According to court filings, first reported by Bloomberg earlier on Thursday, the Justice Department has evidence that a former Alstom executive tried to bribe officials to secure power projects in Indonesia, India and China.

Two executives of Alstom's U.S. subsidiary in Connecticut have already pleaded guilty and admitted to paying bribes on behalf of the company in connection with a project on the Indonesian island of Sumatra, reports said.

The U.S. probe into Alstom initially focused on a US$118 million contract to provide services at a power plant in Sumatra. The contract, known as the Tarahan project and completed in 2007, was part of a joint venture between Alstom and Japan's Marubeni Corp. Last week, Marubeni pleaded guilty to paying bribes to win that project and was fined $88 million.

While investigating the Sumatra deal, the Justice Department found evidence of possible bribery in 11 other energy projects in Indonesia, India and China, according to court documents filed in a case against a former manager at Alstom's Connecticut offices.

The court papers filed by the U.S. government cite entertainment expenses and emails from Alstom employees referring to "special attention" and fees to be paid to local officials to help secure contracts. (*)