DIEBOLD RESOLVES FCPA INVESTIGATION AND AGREES TO PAY $25.2 MILLION CRIMINAL PENALTY
Diebold Inc., the Ohio-based producer of, amongst other things, automated teller machines (ATMs), has agreed to pay a $25.2 million penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries. Bank officials in China and Indonesia were also given free trips to the US and Europe which were falsely recorded as training expenses.
FORMER EXECUTIVE OF MAXWELL TECHNOLOGIES INDICTED ON CHARGES OF CONSPIRING TO BRIBE CHINESE OFFICIALS
Alain Reido, a Swiss citizen, was Maxwell Technologies' vice-president and general manager of the Swiss Branch and is accused of conspiring with other employees of Maxwell to pay over US$2 million in bribes to Chinese government officials in order to sell high voltage capacitors. In 2009, Maxwell paid a fine of US$14 million in relation to this matter.
INDONESIA'S TOP JUDGE ARRESTED FOR BRIBERY
The Chief Justice of the Constitutional Court has been arrested for bribery by the Corruption Eradication Commission and has had money confiscated from his residence. The money is believed to be linked to a district chief election where there were disputed results.
LAWMAKERS ISSUE MEDAN DECLARATION TO FIGHT CORRUPTION
The Medan Declaration, issued at the end of the second general assembly of the Southeast Asian Parliamentarians Against Corruption (SEAPAC), consists of several points needed to enhance corruption eradication. In particular, no legal immunity should be given to any public official who is involved in a bribery case and a closer cooperation is needed among various parties including: non-government organisations, the media, the private sector and institutions that are tasked with corruption eradication. Parliamentarians are also tasked with promoting the principles embodied in the UN Convention on Anti-Corruption and encouraged to ratify the Convention.
INDIA'S ANTI-CORRUPTION LEGISLATION TO UNDERGO A MAJOR CHANGE
The Prevention of Corruption (Amendment) Bill 2013, seeks to strengthen India's anti-corruption legislation and makes it an offence for a commercial organisation to pay bribes. In addition, the draft bill provides that when a commercial organisation is found guilty of the offence, all persons who were responsible or in charge of conducting the business of the organisation will also be guilty of an offence (with imprisonment of up to 7 years and a fine). The draft bill also provides for an adequate procedures defence but does not provide any guidance on what that might mean.
INDIA MOVES TO CANCEL AGUSTAWESTLAND DEAL
India has initiated a process to cancel a €556m helicopter contract with AgustaWestland, just over two weeks after the UK-based unit of Italian defence contractor Finmeccanica SpA invoked arbitration against the Indian government. India's defence ministry had in February frozen payments to AgustaWestland and suspended deliveries following allegations that bribes were paid to Indian officials to help AgustaWestland win the 2010 deal to supply a dozen AW101 helicopters.
SOUTH KOREA CHARGES 100 INDIVIDUALS WITH CORRUPTION OVER NUCLEAR SCANDAL
South Korea has indicted 100 individuals, including a top former state utility official, on corruption charges in a scandal over fake safety certifications for parts in its nuclear reactors. Asia’s fourth largest economy has faced a series of shutdowns of nuclear reactors due to fake documents going back to late 2012. Of its 23 reactors, six remain offline, including three halted in May to replace cables supplied with false certificates.