Bombardier Inc. allegedly used corruption and collusion to win a contract in Azerbaijan – then obstructed an investigation of the deal – according to a World Bank audit that could lead to the Montreal-based transportation giant being blacklisted from projects funded by the international financial institution.
The findings of the audit, which were obtained by The Globe and Mail, accuse the company of colluding with senior officials at Azerbaijan Railways to win a 2013 contract worth US$339-million to install rail-signalling equipment in the country, which is located between Russia and Iran. The deal was 85-per-cent financed by the World Bank.
The audit, conducted by the bank’s Integrity Vice Presidency, also found that Bombardier used an intermediary firm to “funnel bribes” worth millions of dollars to Azerbaijani officials and routed tens of millions more through a network of Russian-controlled shell companies.Anyone see a pattern emerging here? Is it time for a Deferred Prosecution Agreement?