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Volvo execs convicted for Saddam-era bribes

4 Apr 2012, 17:07

Published: 04 Apr 2012 17:07 GMT+02:00

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The two men, Rune Lundberg, 61, and Håkan Nirstedt, 49, were found guilty by the Eskilstuna District Court of having offered 24 million kronor ($3.6 million) in kickbacks to the regime in order to secure contracts for the sale of wheel loaders and road graders.

The men were also handed suspended sentences and fined $18,000 and $9,000, respectively, according to the AP.

The indicted men worked for Volvo Construction Equipment International AB, which is suspected of having paid bribes worth 20 million kronor ($2.2 million) to win contracts for 145 wheel loaders and 43 road graders in the early 2000s.

In March 2008, Volvo was forced to pay US authorities $19.6 million in fines, as well as return past profits with interest from contracts related to the bribery scandal.

Sweden's chief prosecutor Nils-Eric Schultz, who is also pursuing a case against truckmaker Scania related to oil-for-food programme bribes, told the TT news agency he was satisfied with the ruling, but refrained from pushing for a corporate fine because Volvo had already paid the hefty fine to US authorities.

"That's something Scania hasn't done. So that's why I also have the possibility of pursuing an asset forfeiture motion and a motion for company fines against Scania," he said.

"Now I've got a little more inspiration to conclude that investigation as well."

Story continues below…

Hans Strandberg, an attorney for one of the men criticized the ruling for ignoring the fact that the UN’s sanction committee was aware that Iraqi authorities demanded kickbacks when it approved the Volvo deal.

"I'd like to appeal and have this reviewed by the court of appeal, but my client decides," he told TT.

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Your comments about this article

21:13 April 4, 2012 by Lavaux
What the article didn't report is that Sweden's Foreign Ministry knew about the "after sales services" kickback scheme and turned a blind eye to it due to the high volume of trade. Also not reported is how crashingly stupid it was for Volvo and Scania to participate in the scheme through its affiliated distribution network rather than through unaffiliated trading partners operating under implicit distrubtion licenses.
15:16 April 5, 2012 by stacyparrish
Sweden is the poster child for corruption - just look at the Electricity commodity scheme they pull on every swede that needs electricity. The swedish government owns half of the the "privately held company" that buys and sells electricity futures on the "open" market ... then sells these Electricity "units" to the swedish peoples for a premium profit and charges taxes on the transaction not once not twice but three freakin' times! Answer me this: How can a government run agency have a "CEO"?
15:01 April 10, 2012 by rohermoker
There is a cartoon here called Sponge Bob; He always say's " the money is always right"
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