Tyco faces bribe claims in Turkish tenders
WASHINGTONTyco International, the Swizedrland bacsed security technologies fim, has been accused by the Securities and Exchange Commission (SEC) of the United States of paying bribes in order to win tenders in several countries, including Turkey.
The company has agreed to pay $26.8 million to resolve U.S. charges that it paid bribes to officials of foreign governments and misreported such payments, in violation of the Foreign Corrupt Practices Act, Reuters reported yesterday.
Tyco’s former electronics unit, TE M/A-COM, made illicit payments in connection with a 2006 sale of microwave equipment to a state-controlled entity in Turkey, SEC said.
SEC alleged in its complaint lodged with a court that “Employees of MIA-COM were aware that the agent was paying foreign government customers to obtain orders. One internal e-mail stated: ‘Hell, everyone knows you have to bribe somebody to do business in Turkey. Nevertheless, I’ll play it dumb if [M/A¬COM’s agent] should call,’” the document said.
However, the Turkey company which is accused of taking bribes remainde unidentified.
Tyco International is a global company that offers electronic security products and services, fire protection and detection products and services, as well as valves and controls. The conduct came to light through a review of Tyco’s operations following a 2006 settlement, according to court documents, which also revealed acts of “bribery” in countries such as Saudi Arabia, China, Germany and France.
The Switzerland-headquartered conglomerate undertook a review of whether its global operations complied with the Foreign Corrupt Practices Act following an April 2006 settlement to resolve foreign bribery and other charges. That review uncovered certain additional improper payments and mis-recorded expenses around the world, SEC said.
A Tyco subsidiary in the Middle East, Tyco Valves & Controls Middle East Inc., pleaded guilty yesterday and admitted it paid bribes to officials employed by the state-controlled oil and gas company in Saudi Arabia in order to obtain contracts with it. Tyco’s China unit improperly recorded a $3,700 payment in 2005 to a team at a state-owned corporation in connection with a $770,000 contract with the Chinese Public Security Ministry, SEC said. Tyco units around the world including in Germany and France also improperly recorded payments made in other countries, SEC said.