UK fraud office arrests 3 board members of French company Alstom

UK fraud office arrests 3 Alstom board members

LONDON — Three executives of British subsidiaries of the French transport and infrastructure company Alstom SA have been arrested on suspicion of bribery and other offenses, the British Serious Fraud Office said Wednesday.

The agency said search warrants were executed Wednesday morning at five Alstom premises and four homes.

The three suspects, aged 52, 51 and 44, were not further identified but were described as members of the boards of Alstom UK Holdings Ltd., Alstom Ltd. and Alstom Network UK Ltd.

In addition to bribery, the agency said the three were suspected of corruption, conspiracy to pay bribes, money laundering and false accounting. They were taken to police stations to be interviewed by agents of the Serious Fraud Office.

The SFO said it had been working closely with the Federal Police in Switzerland and a number of Police Forces in the UK.

“The police apparently executed search warrants upon the request of the Swiss Federal justice,” Alstom said in a statement posted on its Web site.

“Alstom has been investigated by the Swiss justice for more than three years on the motive of alleged bribery issues. Within this frame, Alstom’s offices in Switzerland and France have already been searched in the past years.

“Alstom is cooperating with the British authorities,” the company said.

According to Swiss court documents released two years ago, the investigation centered on allegations that Alstom funneled bribes worth 70 million francs ($65 million) a year through its Swiss subsidiary, hiding the payments as “consultancy fees.” The company denies the claim.

“The Serious Fraud Office is undertaking its own investigation in England linked to Alstom businesses. The SFO is also executing a request from Switzerland for judicial assistance,” said Jeannette Balmer, spokeswoman for Swiss federal prosecutors.

“In Switzerland, the Alstom investigations are ongoing. In light of the ongoing investigations, we cannot answer any questions on the substance of the case.”

A related French inquiry was opened in 2007, based on information from Swiss authorities.

Alstom, a maker of high-speed trains and power stations, was saved from bankruptcy in 2004 when French President Nicolas Sarkozy — then the finance minister — organized a state bailout.

AP reporters Bradley S. Klapper in Geneva and Greg Keller in Paris contributed to this report.