Azernews.Az

BAKU – Swiss freight company Panalpina has admitted allegedly paying bribes to Azerbaijani officials in past years.

According to the US Department of Justice, Panalpina World Transport (Holding) Ltd, which operates in about 80 countries, has acknowledged paying a total of $27 million in bribes during 2002-2007 to officials of Angola, Azerbaijan, Brazil, Kazakhstan, Nigeria, Russia and Turkmenistan.

Radio Liberty reported that according to US investigators, Panalpina’s branch in Azerbaijan had allegedly paid $900,000 in bribes to the country’s customs officials in this period. The bribes were paid to expedite imports of goods, avoid customs duties on imported goods, and lower tax assessments.

The Justice Department’s documents claim that Azerbaijani officials had received bribes to overlook incomplete and inaccurate documentation.

Also, Panalpina Azerbaijan is said to have paid bribes to secure tax breaks in Azerbaijan.

The Azerbaijani government has not yet responded to the allegations.

Tidewater Marine, another of the six companies fined by the Justice Department, admitted that it had paid bribes to Azerbaijani tax inspectors in 2001-2005. The New Orleans-based Tidewater Marine, which operates offshore service and supply vessels for energy exploration, is charged with paying $160,000 in bribes. Tidewater is said to have saved $820,000 in taxes.

In court documents filed Thursday, Panalpina and its U.S. subsidiary agreed to criminal fines of $81.9 million, while Tidewater faces a fine of $15.6 million.

The fines are said to be rather low since the two companies have cooperated with investigators and admitted to wrongdoing.

Court documents also said that if Panalpina had not agreed to pay the fine and settle the matter out of court, it would have faced a fine of up to $144 million.

The companies fined following an investigation by the US Justice Department and Securities and Exchange Commission also include four other energy companies, including Royal Dutch Shell.

The companies will have to pay more than $156 million in fines and relinquish nearly $80 million in profits for their roles in the alleged foreign bribes.