In a significant crackdown on corruption, US authorities have imposed a massive penalty of over 300% on bribes paid by companies including Moog Inc, Oracle Corporation and Albemarle Corporation, which were involved in paying bribes to Indian entities like HAL, Railways and IOC . These companies settled by paying millions of dollars to avoid prosecution.
Bribing of HAL and Railways by Moog Inc.
US-based research and design firm Moog Inc. found guilty Bribe Indian officials will secure contracts with Hindustan Aeronautics Limited (HAL) and South Central Railways. The company paid over half a million dollars in bribes, with the investigation revealing that the bribes were disguised as legitimate contractor services. Moog settled the case by paying a fine of more than $1.68 million.
Corrupt practices of Oracle Corporation in many countries
Oracle Corporation faced bribery allegations in India, the United Arab Emirates and Türkiye, particularly for transactions with Indian Railways. In 2019, Oracle India sales employees engaged in corrupt practices, paying bribes to Indian state-owned entities. After being caught paying $6.8 million in bribes, Oracle settled the case by paying a significant fine of $23 million.
Albemarle Corporation’s massive bribery scandal
Albemarle Corporation, a US-based chemical manufacturing company, was caught on charges of paying bribes to Indian Oil Corporation (IOC) and companies in Indonesia and Vietnam. The company paid more than $63.5 million in bribes over several years to win the contract. In September 2023, Albemarle settled the case by paying a fine of more than $198 million to avoid prosecution.
Details of bribery and settlement agreements
The US Department of Justice and the Securities and Exchange Commission (SEC) have exposed a detailed picture of bribery schemes by these companies. Moog’s Indian subsidiary, Moog Motion Controls Private Limited (MMCPL), bribed officials to win contracts for South Central Railway and HAL, while Oracle used excessive discounts to pay bribes. Similarly, Albemarle’s bribery practice with the IOC continued for several years, starting in 2009.
Crackdown on corruption and its implications
These settlements serve as a stern warning to companies engaging in corrupt conduct, with U.S. officials taking aggressive action to curb international bribery. The substantial fines imposed on these companies reflect the seriousness of the violations and reinforce the commitment of US authorities to fight corruption globally.
