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Bahrain Arm Accuses Alcoa of Corruption

US aluminum giant bribed, defrauded, and overcharged, lawsuit alleges

By Rob Quinn,  Newser Staff

Posted Feb 28, 2008 10:47 AM CST

(Newser) – A company controlled by Bahrain's government has filed a lawsuit in US federal court accusing metals giant Alcoa of a host of shady business practices, the Wall Street Journal reports. Pittsburgh-based Alcoa, one of the world's biggest aluminum companies, systematically overcharged Bahrain Aluminum for raw materials and funneled money to corrupt officials during a 15-year conspiracy, the suit charges.

The suit is expected to highlight the use of intermediaries to avoid US laws making it illegal for American companies to pay bribes in foreign countries. Records show that $2 billion paid to Alcoa by the Bahrain company found its way to tiny companies in other countries; the lawsuit claims this money was used to grease the palms of Bahraini officials.

The world headquarters of Alcoa Inc. are seen along the north shore of the Allegheny River in Pittsburgh in this April 10, 2007 file photo. (AP Photo/Keith Srakocic, file)
The world headquarters of Alcoa Inc. are seen along the north shore of the Allegheny River in Pittsburgh in this April 10, 2007 file photo. (AP Photo/Keith Srakocic, file)   (Associated Press)
This is the Alcoa world headquarters in Pittsburgh, Oct. 9, 2007. The metals giant has been accused of bribing Bahraini officals in a 15-year conspiracy. (AP Photo/Gene J. Puskar)
This is the Alcoa world headquarters in Pittsburgh, Oct. 9, 2007. The metals giant has been accused of bribing Bahraini officals in a 15-year conspiracy. (AP Photo/Gene J. Puskar)   (Associated Press)
It is unusual for foreign companies or governments to launch bribery cases against US companies in US courts, as Bahrain Aluminum.
It is unusual for foreign companies or governments to launch bribery cases against US companies in US courts, as Bahrain Aluminum.   ((c) Joe Loe)
US aluminum giant Alcoa has been charged with corrupt business practices in a lawsuit filed in federal court. A Bahrain company says it was overcharged for raw materials, and the money was used to pay off corrupt Bahraini government officials who granted contracts.
US aluminum giant Alcoa has been charged with corrupt business practices in a lawsuit filed in federal court. A Bahrain company says it was overcharged for raw materials, and the money was used to pay...   ((c) hyku)
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