KUALA LUMPUR: Axiata Group Bhd has imposed a 12-month suspension on Alcatel-Lucent group (ALU) including its Malaysian operations which would bar it from any new bids for contracts, but it would continue all existing contracts.
Axiata said on Wednesday, March 23 the suspension would include suspension of the ALU group from any invitations to submit any new tenders, entry into new contracts or continuing with any negotiations that are currently being undertaken with any group member.
'The suspension will also apply to any consortium, joint-venture or partnership of which any ALU group member is a party.
'Axiata Group will continue to honour all existing contractual obligations which it has agreed to prior to this decision and any proprietary arrangements which Axiata Group considers to be critical to its operations,' it said.
Axiata said the suspension was for 12 months from Feb 18, 2011 and may be reviewed from time to time subject to ALU group providing assurances and satisfactory evidence that it has implemented clear and enforceable policies and measures to prevent a recurrence of any improper acts in the future.
To recap, the US Securities and Exchange Commission had last year charged the Paris-based Alcatel-Lucent with violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to foreign government officials to illicitly win business in Latin America and Asia.
The SEC alleged Alcatel's subsidiaries used consultants who performed little or no legitimate work to funnel more than US$8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts.
Alcatel agreed to pay more than US$45 million to settle the SEC's charges, and pay an additional US$92 million to settle criminal charges announced today by the US Department of Justice.
The settlement covered activities in several countries in Africa, Latin America, Asia, including Malaysia.
The investigation in Malaysia covers events that occurred between October 2004 and February 2006, and involve alleged improper payments to TELEKOM MALAYSIA BHD []'s (TM) employees.
On Wednesday, Axiata said its board was providing additional information on the independent investigation into the allegations made arising from the settlement entered into between ALU and the US Department of Justice and Securities Exchange Commission.
'The findings of the investigation do not have any financial or operational impact on Axiata Group. The telecommunications contract mentioned in the settlement and awarded by Celcom Axiata Berhad to Alcatel-Lucent Malaysia Sdn Bhd (ALU Malaysia) was concluded in 2009,' it said.
Axiata said its board of directors had considered the findings of the investigation and taking into consideration ALU's admission to the Department of Justice of having made improper payments to secure contracts from TM which were linked to Celcom, then a unit of TM, had decided for an Axiata group-wide suspension to be imposed on ALU and its group of companies
Axiata also said the matter under investigation happened before the demerger of TM Group.
Subsequent to the demerger, Axiata said the board and organisation structure of Axiata group had changed and new processes are adopted across the group.
Axiata strives to benchmark its processes against international best practices and as a matter of good practice will continuously review and improve these processes.
'Constant reminders are issued to its vendors and employees to comply with Axiata's policies and Code of Conduct and Axiata does not tolerate any breach of its policies,' it said.
Axiata said on Wednesday, March 23 the suspension would include suspension of the ALU group from any invitations to submit any new tenders, entry into new contracts or continuing with any negotiations that are currently being undertaken with any group member.
'The suspension will also apply to any consortium, joint-venture or partnership of which any ALU group member is a party.
'Axiata Group will continue to honour all existing contractual obligations which it has agreed to prior to this decision and any proprietary arrangements which Axiata Group considers to be critical to its operations,' it said.
Axiata said the suspension was for 12 months from Feb 18, 2011 and may be reviewed from time to time subject to ALU group providing assurances and satisfactory evidence that it has implemented clear and enforceable policies and measures to prevent a recurrence of any improper acts in the future.
To recap, the US Securities and Exchange Commission had last year charged the Paris-based Alcatel-Lucent with violating the Foreign Corrupt Practices Act (FCPA) by paying bribes to foreign government officials to illicitly win business in Latin America and Asia.
The SEC alleged Alcatel's subsidiaries used consultants who performed little or no legitimate work to funnel more than US$8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts.
Alcatel agreed to pay more than US$45 million to settle the SEC's charges, and pay an additional US$92 million to settle criminal charges announced today by the US Department of Justice.
The settlement covered activities in several countries in Africa, Latin America, Asia, including Malaysia.
The investigation in Malaysia covers events that occurred between October 2004 and February 2006, and involve alleged improper payments to TELEKOM MALAYSIA BHD []'s (TM) employees.
On Wednesday, Axiata said its board was providing additional information on the independent investigation into the allegations made arising from the settlement entered into between ALU and the US Department of Justice and Securities Exchange Commission.
'The findings of the investigation do not have any financial or operational impact on Axiata Group. The telecommunications contract mentioned in the settlement and awarded by Celcom Axiata Berhad to Alcatel-Lucent Malaysia Sdn Bhd (ALU Malaysia) was concluded in 2009,' it said.
Axiata said its board of directors had considered the findings of the investigation and taking into consideration ALU's admission to the Department of Justice of having made improper payments to secure contracts from TM which were linked to Celcom, then a unit of TM, had decided for an Axiata group-wide suspension to be imposed on ALU and its group of companies
Axiata also said the matter under investigation happened before the demerger of TM Group.
Subsequent to the demerger, Axiata said the board and organisation structure of Axiata group had changed and new processes are adopted across the group.
Axiata strives to benchmark its processes against international best practices and as a matter of good practice will continuously review and improve these processes.
'Constant reminders are issued to its vendors and employees to comply with Axiata's policies and Code of Conduct and Axiata does not tolerate any breach of its policies,' it said.
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