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Aerospace / Defense / Security
Bremen, Germany
Nationality of Foreign Officials: Greece
Summary of Allegations:
On 27 August 2013, German police raided the offices of Atlas Elektronik, a joint venture between EADS and ThyssenKrupp, and Rheinmetall (see Compendium entry for Rheinmetall) seeking evidence of alleged bribes to Greek officials from 1998 to 2011 totaling $24m, as well as evidence of tax avoidance. Specifically, the company allegedly paid a Greek intermediary over EUR 13 million to secure orders for submarine sonar systems. Some of those funds allegedly were given to Greek officials.
According to the Bremen prosecutor's office, the raid was part of an investigation of suspected payments to Greece in connection with the sale of submarine equipment. Information regarding the allegations stems from Atlas’ own compliance investigation, the results of which it reported to authorities in 2010. Tax investigations of Rheinmetall’s books last year brought new information, allowing the prosecutor’s office to take further action. The allegations overlap with events that were part of the Ferrostaal case.
EADS and ThyssenKrupp bought Atlas Elektronik from BAE Systems in 2005 for €145 million.
On 29 December 2013, Mr. Kantas, a Greek official who was arrested for corruption, named Mr. Efstathiou as one of the individuals who supplied him bribes. Mr. Efstathiou admitted before investigating judges in Greece to bribing Mr. Kantas and also making payments to at least seven high-ranking officers of the Greek armed forces, according to a transcript of his testimony obtained by Reuters. Mr. Efstathiou, who was released on 500,000 euros' bail, said he paid the bribes on behalf of Atlas.
Approximate Alleged Payments to Foreign Officials: USD $11.4 million
Business Advantage Allegedly Obtained: Contract for sale of submarine equipment
Nationality of Foreign Officials: Peru
Summary of Allegations:
The company allegedly paid bribes to an intermediary in connection with a contract to sell torpedoes to the Peruvian navy.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Unspecified
Agencies: Germany: Bremen Public Prosecutor's Office
Results: Assets Frozen/Forfeited, Civil Penalty
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:
Authorities ordered Atlas Elektronick to pay forfeiture of EUR 48 million that had been earned by contracts in Greece and Peru that allegedly involved bribes.
Discovery Method: Voluntary Disclosure
Details:
Atlas informed the prosecutors office after conducting their own compliance investigation in 2010.
Country:
Internal investigations and self-reporting can help uncover and deter corruption.
The circumstances and fact surrounding one investigation can lead to incrimination of other participants.
Alleged events and the investigations thereof can take place over several years, but still be actionable.