Lucent fires four in bribery probe

Lucent Technologies has fired four of its top executives in its China operation, following an internal investigation of its overseas operations' business practices.

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By  Peter Branton Published  April 7, 2004

Lucent Technologies has fired four of its top executives in its China operation, following an internal investigation of its overseas operations business practices. The probe was spurred by bribery allegations in Saudi Arabia, which are still under investigation by US authorities. In a filing with the US Securities and Exchange Commission (SEC) this week, the company said that it had become “aware of internal control deficiencies in foreign operations involving the Foreign Corrupt Practices Act, in addition to those previously reported in Saudi Arabia for which a government investigation is still ongoing.” As a result, four executives are being “separated” from the company: the president, the chief operating officer, a marketing executive, and a finance manager. Lucent is being investigated by the SEC and the US Department of Justice on allegations of bribery in Saudi Arabia. A local firm, National Group for Communications and Computers, filed a law suit against Lucent last August, claiming the company had bribed a Saudi government minister to win contracts in the Kingdom. Lucent said its internal audits involved the company’s operations in 23 countries around the world, including Brazil, China, Russia, the Philippines and other countries. It said it has reported its findings on its “internal control deficiencies” in its China operation to the SEC and the Department of Justice.

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