Alstom SA

Alstom bribery probe focuses on Brazil middleman

European prosecutors investigating possible bribery at Alstom SA are focusing on a middleman who may have brokered payments to Brazilian politicians in exchange for public contracts for the Paris-based power plant and train maker, the Wall Street Journal reported, citing documents in the case.

Between 1998 and 2003, Alstom used a man named Claudio Mendes to channel suspected bribes in Brazil, the newspaper said, citing European investigators. Mendes was probably not the man's real name, it added.

Alstom could be heavily fined or banned from bidding on public contracts in countries such as Brazil, if the company is successfully prosecuted, the newspaper said.

An unidentified Alstom attorney said the company is cooperating fully with law-enforcement officials, the Journal reported.

In Brazil, prosecutors are focusing on some of the 139 contracts Alstom signed with the state of Sao Paulo, valued at $4.6 billion, the newspaper said. (Bloomberg)

(Published by Bloomberg - june 19, 2008)