Amid controversies surrounding the indictment of the Adani Group by the United States Department of Justice for allegedly bribing $265 million to multiple solar energy companies in India, recent orders from American authorities reveal that several US firms involved in bribery cases in India and other countries have settled by paying penalties exceeding 300% to avoid prosecution, The Pioneer reported.
US-based research and design firm Moog Inc was implicated in bribery cases involving over $500,000 paid to Hindustan Aeronautics Limited (HAL) and Indian Railways. To settle the charges, Moog Inc paid significant penalties as directed by the US Securities and Exchange Commission (SEC). Similarly, Indian Railways resolved its case by paying $1.68 million in fines.
IT giant Oracle Corporation was found guilty of corrupt practices, including $6.8 million in bribes involving Indian Railways, as well as entities in the UAE and Turkey. Oracle settled the charges by paying $23 million in fines to the US Treasury.
The report added that the US-based chemical manufacturer Albemarle Corporation was implicated in bribing Indian Oil Corporation (IOC) and companies in Indonesia and Vietnam with payments exceeding $63.5 million. To avoid prosecution, Albemarle paid a hefty fine of over $198 million as per the US Department of Justice’s September 28, 2023 order.
According to the SEC’s October 11, 2024 order, Moog Inc, through its Indian subsidiary Moog Motion Controls Private Limited (MMCPL), bribed officials at HAL, South Central Railway (SCR), and the Research Designs and Standards Organisation (RDSO) under the Ministry of Railways to secure contracts. In one instance, MMCPL employees facilitated improper payments through an agent in 2020 to eliminate competition and win a $34,323 contract from SCR. Similarly, in November 2021, Moog secured a $1.39 million contract for HAL parts and services, paying 2.5% as a bribe to a HAL official. The SEC order also confirms Moog paid over $500,000 in bribes for these contracts.
Albemarle Corporation’s order reveals corrupt dealings with IOC and private Indian refineries between 2009 and 2017. The company paid $1.14 million in commissions to an Indian intermediary to secure contracts, generating $11.14 million in profits from IOC-related business between 2009 and 2011. The US authorities uncovered these practices in 2017, and Albemarle resolved the charges in 2023 by paying fines exceeding $198 million.
Oracle Corporation, as per a September 27, 2022 SEC order, engaged in corrupt practices involving excessive discount schemes and illicit payments in India. Oracle India sales employees created slush funds to channel approximately $330,000 to entities known for bribing state-owned enterprise (SOE) officials, including $62,000 to an employee-controlled entity. The SEC imposed a $23 million fine on Oracle for these violations.
These cases highlight widespread corruption across sectors and the substantial penalties levied by US authorities to address such malpractices.
