FURTHER CHARGES BROUGHT AGAINST JTC EMPLOYEES IN RESPECT OF ALLEGED PAYMENTS TO GOVERNMENT OFFICIALS IN UZBEKISTAN AND INDONESIA
As noted in our previous updates, in June 2014 the Tokyo District Public Prosecutor's Office ("TDPPO") filed criminal charges against three high ranking officials of the railway consulting company, Japan Transportation Consultants Inc. ("JTC"). These charges relate to alleged payments by JTC to officials of state-run Vietnam Railways in order to obtain an Official Development Aid ("ODA") funded urban railway construction project.
It has now been reported that, on 1 August 2014, the same three individuals who are the subject of these previously reported criminal charges have also been indicted for bribing officials in Indonesia and Uzbekistan in order to obtain railway development contracts. According to the indictment, over the course of 26 payments a total of JPY 20 million (USD $200,000) was allegedly paid to officials from the Indonesian Ministry of Transport, Directorate General of Railways, between 2010 and 2013. A further JPY 54 million (USD $540,000) was allegedly paid to executives of Uzbekistan's public railway company, Uzbekistan Temir Yullari, by 5 payments made between 2012 and 2013.
€98 MILLION OF ASSETS SEIZED FROM NOMURA INTERNATIONAL FOLLOWING ALLEGATIONS OF FRAUD ON THE LOCAL GOVERNMENT OF SICILY
It has been reported that the Italian Gardia di Finanzia, the financial police, has seized €98 million of assets held by Nomura International ("Nomura"), the British subsidiary of Nomura Holdings Inc. Over EUR 6 million of assets belonging to seven individuals (four ex-employees and three independent consultants) who are under investigation by the Palermo police are also reported to have been seized.
This seizure follows an Italian court order last year in a case relating to allegations that the local government of Sicily was defrauded by Nomura between 2000 and 2006, using complex financial products in relation to which Nomura managers are alleged to have hidden relevant information. These products are alleged to have led the local government of Sicily to sustain damage of around EUR 175 million. Nomura is reported to have stated that it is co-operating with the police's investigation.