After ‘The Pioneer’ expose on US firms paid penalty of more than 300 per cent for bribery abroad including HAL, Indian Oil Corporation and Railways, the Indian Oil Corporation (IOC) in a regulatory filing declared probe. Albemarle Corporation, a global specialty chemicals supplier that develops and sells catalysts used in the operation of oil refineries was caught by US Department of Justice for bribing officials in IOC and refineries Indonesia and Vietnam.

Albemarle Corporation paid approximately USD 1.14 million in commission to India intermediary company relating to Indian Oil Corporation business and obtained approximately USD 11.14 million in profits on that business between approximately 2009 and 2011,” according to a US Department of Justice order dated September 28, 2023. Albemarle was caught for bribery by the US authorities in 2017 and then settled the case in September 2023 by paying a hefty fine of more than USD 198 million to avoid prosecution.

In a filing to National and Bombay Stock Exchanges dated December 20, the IOC said it is “neither party to nor is there any allegation against the company in relation to the proceedings” in the US authorities. “However, the company has initiated an internal fact-finding review concerning the incident, which allegedly occurred in 2009 to thoroughly understand the facts surrounding these allegations and to determine the appropriate steps to be taken,” IOC said.

The state-owned firm said it has “always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations”. “We assure our stakeholders, partners and employees that we are a law-abiding company, fully compliant with all laws,” India’s largest oil firm said in the filing.

“The Pioneer on December 16 reported that the US Department of Justice’s order dated September 28, 2023 says Albemarle Corporation bagged big contracts in Indian Oil Corporation and companies in Indonesia and Vietnam by corrupt practices and bribing of more than 63.5 million dollars. Albemarle is supplying refining solutions to more than 700 refineries across the world and dealing with Indian Oil Corporation (IOC) from 2009 to 2017. The 46 page order says Albermale started paying bribes to IOC officials to get it removed from the “Holiday List” in 2009.

“Albemarle paid approximately $1.14 Million in commission to India intermediary company relating to Indian Oil Corporation business and obtained approximately $11.14 million in profits on that business between approximately 2009 and 2011,” said the Order. Albemarle was caught for bribery by US authorities in 2017 for 63.5 Million Dollars and then settled the case in September 2023 by paying a hefty fine of more than 198 Million Dollars to avoid prosecution. The 46-page Order imposing fine on Albemarle says the US company also engaged in corrupt practices with an Indian private refinery. However the name of the private refinery is not mentioned in the Order.

The Pioneer also reported that another US firm Moog Inc was caught by US Securities and Exchange Commission (SEC) for bribing in HAL and Indian Railways in 2020. As per the eight page order dated October 11 2024, Moog Inc paid more than 5,00,000 Dollars as bribe for getting contracts in HAL and Railways and paid penalty of 1.68 Million Dollars to US Treasury to avoid prosecution.  IT giant Oracle also paid penalty of 23 Million Dollars in September 2022 when caught for bribery of 6.8 Million Dollars in Indian Railways, UAE and Turkey to bag contract.

The SEC order detailing bribery in HAL says in November 2021, Moog bagged $ 1,399,328 valued contract for parts and services related to the April 2021 contract tender. Investigation found that 2.5% commission was received as a bribe by “a HAL official.” As per the eight page order, Moog Inc paid more than 5,00,000 Dollars as bribe for getting contracts in HAL and Railways.

The September 27, 2022 dated Order of Securities and Exchange Commission says that the IT giant Oracle Corporation was engaged in corrupt practices and bribery in India, UAE and Turkey. “In 2019, Oracle India sales employees also used an excessive discount scheme in connection with a transportation company, a majority of which was owned by the Indian Ministry of Railways… One of the sales employees involved in the transaction maintained a spreadsheet that indicated $67,000 was the “buffer” available to potentially make payments to a specific Indian SOE (State Owned Entity) official.

“A total of approximately $330,000 was funneled to an entity with a reputation for paying SOE officials and another $62,000 was paid to an entity controlled by the sales employees,” states the 10-page order of Securities and Exchange Commission imposing hefty fine of Rs.23 Million Dollars on Oracle, caught for bribery amount of 6.8 Million Dollars.