Axiata Group lifts suspension on Alcatel-Lucent

by **hlk** Fri 16 Dec 2011, 19:03

KUALA LUMPUR (Dec 16): Axiata Group Bhd has lifted the group-wide
suspension against the Paris-based Alcatel-Lucent and its group of
companies which includes Alcatel-Lucent Malaysia Sdn Bhd (ALU Group)
with effect from Friday.

Axiata said the decision to lift the suspension, enforced since March
23, was made after a thorough review that included external agency
reports on the institutionalisation of policies, compliance structures
and higher ethical standards throughout the ALU Group.

“It also takes into account satisfactory evidence and assurances by
ALU Group that it has improved its policies and implemented enforceable
measures to prevent a recurrence of any improper acts in the future and
adherence to all applicable legal, regulatory and ethical requirements,”
it said.

Axiata said the whole process was based on Axiata’s zero tolerance
policy against corruption in its business dealings and transactions.

To recap, Axiata had on March 23 imposed the suspension which
included 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 also applied to any consortium, joint-venture or partnership of which any ALU group member is a party.

In 2010, the US Securities and Exchange Commission had charged ALU
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.