Alcoa settles Bahrain bribery charges for $384M
Jan 09, 2014 | 12:32 PM
| Michael Cowden
CHICAGO Alcoa Inc. has agreed to pay $384 million to settle U.S. Securities and Exchange Commission (SEC) allegations that the aluminum maker paid bribes to government officials in Bahrain.
In addition, Alcoa World Alumina LLC (AWA), a subsidiary of Pittsburgh-based Alcoa, has agreed with the Justice Department to plead guilty to one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act, the company and the SEC said Jan. 9.
Alcoa "lacked sufficient internal controls" to detect and prevent the bribes, which were recorded on its books as legitimate commissions or sales to a distributor, the SEC said.
"As the beneficiary of a long-running bribery scheme perpetrated by a closely controlled subsidiary, Alcoa is liable and must be held responsible," George Canellos, co-director of the SECs enforcement division, said in a statement. "It is critical that companies assess their supply chains and determine that their business relationships have legitimate purposes."....
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