MACC team to head to France for Alcatel probe

Tim Leonard newsdesk@thesundaily.com PETALING JAYA (Jan 3, 2011): The Malaysian Anti-Corruption Commission (MACC) will dispatch a team to France to obtain more information on allegations made by the US that Paris-based telco firm Alcatel- Lucent SA paid bribes to Malaysian officials to obtain confidential information relating to a public tender that Alcatel ultimately won. A senior MACC investigator told theSun that there appears a strong basis for an in-depth probe following leads obtained by the commission from an undisclosed source, and it is important to establish the facts of the case before commencing a full-fledged investigation. "It is not going to be an easy job but we hope our trip to France will help shed more light into what transpired and how the alleged corruption involving Malaysians took place," the official said. The official also said the allegations were serious and cannot be taken lightly, especially in view of the country’s reputation at stake in the international circles. MACC director of investigations Mustafar Ali, when contacted today declined to elaborate on the details but assured the public a thorough investigation will be carried out. "I cannot disclose further details but as usual (in any case), we will leave no stone unturned in our investigations," said Mustafar. On Dec 29, the MACC in a statement said it views the allegation seriously and will check with the relevant parties to get the actual facts before taking the necessary action. The MACC also advised the media to stop making speculations on the matter before details on the allegation have been verified. The Paris-based firm has been accused by US authorities of having bribed government officials in Latin America and Asia – including Malaysia – between December 2001 and June 2006. Alcatel on Dec 27, agreed to pay US$137 million (RM432.4 million) in fines and penalties to settle the charges, after reaching an agreement with the US Justice Department and the Securities and Exchange Commission. The US Justice Department said Alcatel had violated the Foreign Corrupt Practices Act prior to its 2006 merger with US-based Lucent Technologies. Alcatel was charged with two counts of violating the US Foreign Corrupt Practices Act and entered into a deferred prosecution agreement. The company was accused of making payments to government officials in countries including Costa Rica, Honduras, Taiwan and Malaysia to win or keep contracts worth tens of millions of dollars, said the US Securities and Exchange Commission and Justice Department. Based on court filings, the French company made significant lump-sum payments through US bank accounts to two consultants labelled "Malaysian Consultant A" and "Malaysian Consultant B", purportedly for market research. The case is the latest in a series of bribery cases brought by US President Barrack Obama’s administration to crack down on illegal payments by businesses to win contracts.