Saudi Telecom Firm Accuses Lucent of Bribery

Dow Jones Business News ^ | 8/11/03 | Colleen DeBaise

[Pro-Bush]

Saudi Telecom Firm Accuses Lucent of Bribery

NEW YORK -- A Saudi telecommunications company filed a lawsuit accusing Lucent Technologies Inc. (NYSE:LU - News) of bribing a Saudi official with money, gifts and free use of private jets to make business decisions that were favorable to Lucent.

Lucent and a Swiss firm, ACEC S.A., paid more than $15 million in bribes between 1995 and 2002 to Ali Al-Johani, who served as minister of Saudi Arabia's Ministry of Post Telephone & Telegraph, according to the suit, filed late Friday in Manhattan federal court.

In exchange for the bribes, Mr. Al-Johani allegedly directed Saudi Telecommunications Company, a firm created by the Saudi government, to make decisions in Lucent's favor, contends National Group For Communications & Computers Ltd. in the suit.

Among other things, Lucent was allowed to terminate a contract it had with National Group, which caused damages of more than $63 million, National Group estimates. (National Group, based in Riyadh, now does business as Silki La Silki Telecommunications Co. as a result of a 1999 merger.)

"While we have not yet been served, we are familiar with the allegations," said Bill Price, a Lucent spokesman. "We believe them to be without merit and will defend ourselves vigorously."

An official at ACEC couldn't immediately be reached.

According to the suit, the bribes consisted of free use of a private jet for Mr. Al-Johani and his family; payment of Mr. Al-Johani's medical expenses; hotel stays for Mr. Al-Johani and his family at luxury hotels in New York and Seattle; and, at Mr. Al-Johani's direction, $2 million in gifts to a Seattle hospital.

National Group said in the suit that Swiss criminal authorities are investigating the bribery allegations involving ACEC.

National Group seeks triple damages under federal racketeering laws.

[Pro-Bush]

National Group seeks triple damages under federal racketeering laws.

gimme a break?

[CherylBower]

Talk about calling the kettle black . . .

[Deathmonger]

Ain't free trade great?

[MineralMan]

Where's the surprise? Bribes are part of doing business in that part of the world.

[RoughDobermann]

Saudi Telecom Firm Accuses Lucent of Bribery

A Saudi company complaining about bribery is like Bill Clinton complaining about dishonesty...

[adam_az]

Basically, they are suing because their bribe consisted of 7 camels and use of a rusty cab driven by a hirsute man, and thus could not compete.

Why don't they sue the corrupt "official?"

[Pro-Bush]

A Saudi company complaining about bribery is like Bill Clinton complaining about dishonesty...

You nailed it on the head.

[polemikos]

Saudi Telecom Firm Accuses Lucent of Bribery

Too much or too little?

[cyborg]

so... tell me when the Saudi prince offered Giuliani ten million dollars as as donation for 9-11 but had to denounce Israel... what's up with that?

[Pro-Bush]

so... tell me when the Saudi prince offered Giuliani ten million dollars as as donation for 9-11 but had to denounce Israel... what's up with that?

Good call. A bribe by any other name, is still a bribe.

[Pro-Bush]

I would guess too little. Seeing that Lucent has been chosen as the token USA company to fall on the sword to get their message across to Corporate America & the American Gov.