US Justice Department Probes Standard Chartered Bank Over Bribery Allegations
The London-based Standard Chartered Bank is being probed by the US Justice Department over bribery allegedly committed by Maxpower Group Pte. Ltd., a power company the bank controls. An internal audit at the Indonesian company found that there were over $750,000 in outstanding cash advances in 2014 to early 2015 which may have been used as bribes. Lawyers reviewing the audit said that there were strong indications the money paid for power contracts awarded by Indonesian government officials and others from 2012 to 2015. The US is investigating if anti-corruption rules were broken by the bribes.
MOSCOW (Sputnik) — An internal audit at Maxpower Group Pte. Ltd, Southeast Asia’s leading gas-to-power company controlled by the UK-headquartered financial institution, conducted last year, indicated that more than $750,000 in outstanding cash advances in 2014 and early 2015 needed to be examined as possible bribes, according to the media outlet.

Lawyers hired to review the audit concluded that there were strong indications that inappropriate payments were made to Indonesian government officials and others by company employees from at least 2012 to late 2015, to get power contracts in Indonesia, the WSF sources claimed, adding that some of the payments were funded by cash advances requested by three founders and two employees.

The US Justice Department is investigating whether US anti-corruption rules were broken by the alleged bribes and whether Standard Chartered executives on the Maxpower board knew about or approved the bribery-taking.