Alcatel-Lucent says it has reached an intercession agreement with the United States Department of Justice on the bribery scandal in China and will pay US$2.5 million in fine.
Lucent was accused of taking part in bribery between 2000 and 2003, before it was formally acquired by Alcatel. The company's bribery was said to include inviting Chinese officials for free sightseeing in the U.S. in exchange for obtaining some telecom equipment projects.
Between 2000 and 2003, Lucent reportedly spent millions of dollars arranging more than 300 tours for Chinese officials either for sightseeing or for entertainment and leisure. During this period, it also sponsored and arranged 24 tours for Chinese government clients. It also offered many other tours for Chinese officials to travel in the U.S., Europe, Australia and other regions under the pretense of factory visits and training.
A spokesperson from Alcatel-Lucent said that the company fully cooperated with the United States Department of Justice and the Securities and Exchange Commission in the investigation on the bribery case and was satisfied with the intercession agreement, which asked the company to further strengthen its financial management and supervision mechanism. As part of the intercession agreement, the United States Department of Justice said it would give up the criminal lawsuit against Alcatel-Lucent.