WASHINGTON D.C. — A Japanese corporation plead guilty to paying bribes to high-ranking government officials in Indonesia to get a lucrative power project, according to federal officials.
Marubeni Corporation plead guilty this week to an eight-count criminal complain: one count of conspiracy to violate the anti-bribery provisions of the Foreign Corruption Practices Act and seven counts of violating the Foreign Corruption Practices Act, according to officials.
Marubeni, which is also a trading company, agreed to pay a criminal fine of $88 million.
In exchange for the bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara or PLN, the state-owned and state-controlled electricity company in Indonesia – Marubeni hoped to get a $118 million contract, known as the Tarahan project, officials said.
Marubeni and its partner hired two consultants to provide consulting services for this project. However, the consultants were used to pay the bribes to Indonesian officials, according to authorities.
“Marubeni pleaded guilty to engaging in a seven-year scheme to pay – and conceal – bribes to a high-ranking member of Parliament and other foreign officials in Indonesia,” said Acting Assistant Attorney General Mythili Raman. “The company refused to play by the rules, then refused to cooperate with the government’s investigation. Now Marubeni faces the consequences for its crooked business practices in Indonesia .”
“For several years, the Marubeni Corporation worked in concert with a Connecticut company, among others, to bribe Indonesian officials in order to secure a contract to provide power-related services in Indonesia,” said Acting U.S. Attorney Michael J. Gustafson.
The Japanese corporation, whose creed is “Sei, Shin, Wa” which means “Fairness, Innovation and Harmony,” issued a press release regarding the plea agreement.
“Marubeni has undertaken extensive efforts to enhance its anti-corruption compliance program, and believes that its current program is robust and effective. Although the agreement reached with DOJ today does not require Marubeni to further engage a compliance consultant, Marubeni is taking this matter seriously and commits to continue to thoroughly implement and enhance its anti-corruption compliance program,” the corporation stated.
As part of the plea agreement, Marubeni agreed to cooperate with an ongoing investigation.
Some Marubeni Officials Plead Guilty or Have Charges Pending:
- Frederic Pierucci, who was the vice president of global boiler sales at Marubeni’s consortium partner, pleaded guilty in July to one count of conspiring to violate the FCPA and one count of violating the FCPA.
- David Rothschild, a former vice president of regional sales at the consortium partner, pleaded guilty in November to one count of conspiracy to violate the FCPA.
- Charges are pending against Lawrence Hoskins, a former senior vice president for the Asia region for the consortium partner, and William Pomponi, a former vice president of regional sales at the consortium partner.
Hoskins and Pomponi are presumed innocent unless and until proven guilty.