Amid ongoing controversies surrounding the indictment of the Adani Group by the United States Department of Justice for allegedly bribing $265 million to various solar energy companies in India, recent developments reveal that numerous American firms involved in these bribery cases have opted to settle by paying penalties exceeding 300% to avoid prosecution.
One notable case involves Moog Inc., a US-based research and design firm, which was implicated in bribing Hindustan Aeronautics Limited (HAL) with over half a million dollars. Indian Railways has settled with the US Securities and Exchange Commission (SEC), agreeing to pay over $1.68 million to resolve allegations of bribery.
The IT giant Oracle Corporation has been implicated in a scandal involving corrupt practices, having allegedly bribed over $6.8 million to Indian Railways and various organizations in the UAE and Turkey. To resolve the case, Oracle agreed to pay a fine of $23 million to the US Treasury as mandated by the US Securities and Exchange Commission (SEC).
In another case, Albemarle Corporation, a US-based chemical manufacturer, was found guilty by the US Department of Justice of bribing Indian Oil Corporation as well as companies in Indonesia and Vietnam, totaling more than $63.5 million in bribes. To avoid prosecution, Albemarle settled by paying a substantial fine exceeding $198 million.
On October 11, 2024, the Securities and Exchange Commission (SEC) revealed that Moog Inc., through its Indian subsidiary Moog Motion Controls Private Limited (MMCPL), engaged in bribery involving over $6.8 million to officials at Hindustan Aeronautics Limited (HAL), South Central Railway, and the Research Designs and Standards Organisation (RDSO) under the Ministry of Railways. The SEC’s order detailed how, shortly after hiring a third-party agent in August 2020, Moog was added to the supplier list for an upcoming tender with South Central Railway.
In September 2020, MMCPL won a contract worth $34,323. By April 2022, the agent invoiced MMCPL for “commission charges,” which several employees recognized included improper payments to government officials to eliminate competition and secure contracts. These payments were falsely recorded as legitimate contractor services, with a bribe commission of 10% noted in the railway contract.
The SEC’s order also highlighted that in November 2021, Moog secured a contract valued at $1,399,328 for parts and services related to a tender issued in April 2021. Investigations revealed that a HAL official received a kickback of 2.5% for their participation in the bribery scheme.
In a separate case, the US Department of Justice issued an order on September 28, 2023, stating that Albemarle Corporation won significant contracts with Indian Oil Corporation and companies in Indonesia and Vietnam through corrupt practices involving more than $63.5 million in bribes. Albemarle has been supplying refining solutions globally since 2009 and began paying bribes to IOC officials to be removed from a “Holiday List” starting in that year.
The order indicated that Albemarle paid around $1.14 million in commissions to an intermediary company linked to IOC business and earned approximately $11.14 million in profits from this arrangement between 2009 and 2011. After being caught for bribery by US authorities in 2017 for $63.5 million, Albemarle settled the case in September 2023 by agreeing to pay over $198 million to avoid prosecution.
Additionally, a September 27, 2022 SEC order stated that Oracle Corporation was involved in corrupt practices and bribery across India, the UAE, and Turkey. In 2019, Oracle India sales employees utilized an excessive discount scheme with a transportation company partly owned by the Indian Ministry of Railways. One employee maintained records indicating that $67,000 was set aside as a “buffer” for potential payments to a specific official from a state-owned entity.
The SEC reported that approximately $330,000 was funneled to an entity known for paying officials of state-owned enterprises, while another $62,000 was paid to an entity controlled by Oracle sales employees. The SEC ultimately imposed a hefty fine of $23 million on Oracle due to its involvement in bribery totaling $6.8 million.
