Posted on 08/11/2003 9:40:22 AM PDT by NativeNewYorker
Aug. 11 (Bloomberg) -- Lucent Technologies Inc., the largest
U.S. telephone-equipment maker, won favorable treatment from Saudi
Arabia's telecommunication agency by paying more than $15 million
in bribes to the agency's minister, a lawsuit claims.
The National Group of Communications and Computers Ltd., a
Saudi-based company, says Lucent paid the money to Ali Al-Johani,
whose ministry oversaw the Saudi-run phone system. National Group,
now known as Silki-La-Silki National Telecom Ltd., sued in U.S.
District Court in Manhattan.
In return for the alleged bribes, Al-Johani directed Saudi
Telecommun Co. to take actions that favored Lucent, the suit says.
Lucent, based in Murray Hill, New Jersey, was allowed to end a
contract that it had with National Group, costing the Saudi
company $63 million, the suit says.
''The bribes consisted of free use of a private jet aircraft
for Al-Johani and his family from 1995 to at least 2000,'' the
suit says. Also, Lucent paid expenses for Al-Johani and his family
and made a $2 million gift to a Seattle hospital at the minister's
insistence, the suit says.
Lucent in 2001 won a four-year, $150 million contract from
Saudi Telecom to upgrade the country's telecommunications network.
In 2000, Lucent won two contracts valued at $145 million from
Saudi Telecom for optical gear that boosts network capacity.
The suit seeks damages of at least $63 million.
Lucent spokesman John Skalko didn't have an immediate comment
on the suit, which was filed Friday.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.