Saudi telecom firm accuses Lucent of bribery
By Jonathan Moules in New York
Published: August 11 2003 23:00 | Last Updated: August 11 2003 23:00
A Saudi telecommunications company has filed a lawsuit against Lucent Technologies, accusing the telecommunications equipment carrier of bribing a Saudi official with money, medical expenses and free use of private jets to gain favourable business decisions.
National Group for Communications & Computers, a Saudi telecoms group, filed the action in New York's federal court late on Friday accusing Lucent and ACEC of Switzerland of paying $15m in bribes between 1995 and 2002 to Ali Al-Johani, a former minister of Saudi Arabia's Ministry of Post Telephone and Telegraph.In return for gifts and money, the suit alleges, Mr Al-Johani pushed the publicly owned Saudi Telecommunications Company to make decisions in favour of Lucent.It adds that Lucent was also allowed to terminate a contract with National Group, causing damages of more than $63m.The lawsuit alleges the bribes consisted of free use of a private jet, luxury hotel rooms in New York and Seattle, payment of Mr Al-Johani's medical expenses and a $2m donation to a Seattle hospital.National Group, which now trades as Silki La Silki Telecommunications following a merger in 1999, is seeking triple damages under US federal racketeering rules.Lucent said on Monday that it had not yet been served with the lawsuit."We are familiar with the allegations," the company said. "We believe it is without merit and we will defend ourselves rigorously."National Group's suit said the Swiss government was investigating the allegations against ACEC. However, ACEC was unavailable for comment |
