x Abu Dhabi, UAETuesday 25 July 2017

Greek authorities charge 29 over Ferrostaal bribery claim

Greek prosecutors have charged 29 people with bribery in a decade-old submarine deal that involved Ferrostaal, a firm owned by Abu Dhabi's International Petroleum Investment Company.

Greek authorities have charged 29 people with bribery in a case involving Ferrostaal, the German industrial services company part-owned by Abu Dhabi's International Petroleum Investment Company (Ipic).

The charges, filed yesterday, stem from payments allegedly made to secure a German submarine order a decade ago, AFP reported, citing a judicial source.

Ipic paid almost US$700 million (Dh2.57 billion) for a 70 per cent stake in Ferrostaal in 2009 from the German lorry maker MAN. But the company later tried to rescind the deal after German authorities launched an investigation the following year and allegations of bribery emerged. Ipic and MAN are still in a legal fight over the deal in Germany, and Ipic recently hired Morgan Stanley to evaluate the investment.

The criminal charges lodged yesterday by the Greek prosecutor Grigoris Peponis alleged bribery, embezzlement, breach of duty and money-laundering over the submarine order from HDW-Ferrostaal, a German shipbuilder. The suspects were not identified.

* Asa Fitch, with AFP