Posted on 06/03/2012 12:57:09 AM PDT by Olog-hai
Bombardier Transportation confirmed that it paid a Tunisian businessman to act as an intermediary as it worked to secure a contract in South Africa, a process it says is common place in unfamiliar countries, but denies reports of wrongdoing.
The Montreal-based company has been accused by South African newspaper The Mail and Guardian of involvement in a bribery scheme involving $35 million paid to Youssef Zarrouk, a "Tunisian fixer," which the paper said was "evidence suggestive of bribery in the R$26-billion Gautrain contract."
Bombardier spokesman John Macdonald said the company had an agreement with Zarrouk for his help in navigating the market, adding that Bombardier has a very stringent selection process in choosing agents as well as a commitment to honouring its code of ethics.
"When we go into a geography where we're not familiar with the market it is quite normal (that Bombardier) would hire an agent or multiple agents," he said.
"And the agent is the individual who actually helps getting our business development team and our sales team up to speed and helps us in the responding to requests for proposals and how to best promote our product in a particular market."
Bombardier is the lead partner in the Bombela consortium that won the contract in 2005 to build and operate the Gauteng rapid-rail system. …
(Excerpt) Read more at winnipegfreepress.com ...
It is how business is done in the rest of the world. Sad.
Bombardier’s stock never recovered when they bought Adtranz from Daimler Benz. The rail business/mass transit business, Adtranz’s, has always been low margin. A dolphin swallowed a whale and has suffered since. Marketing, and what they do to get business, has always been a problem for Adtranz. In the past, when they missed schedule, managment made concessions to agrieved customers which lowered slim margins even more.
If that isn’t a business case study, it should be.
I’m not sure I’d get on a bus with the word “Bombardier” painted on the side.
They are crooks...beat Siemens in Amtrac deal even though they had no prototype. How?
There are ways of remunerating that are untraceable.
They are crooks...beat Siemens in Amtrac deal even though they had no prototype. How?
There are ways of remunerating that are untraceable.
The core business of Adtranz has been through several owners. If Bombardier management was up to snuff, they would dump it. Bombardier stock would probably eventually return to the $30 level. With Adtranz dragging them down, I doubt they’ll ever see $10.
You have to bribe people to do business in South Africa?
“Freeeeee Nelson Mandela........Freeeeeee Nelson Mandela....”
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