JAKARTA (Yosefardi) – Diebold Inc, US-based Automated Teller Machines (ATM), agrees to payUS$25.2 million penalty for bribery allegation in China and Indonesia, and falsifying records in Russia.
It will also pay another US22.9 million to resolve civil charges filed by US Securities and Exchange Commission. It made the company’s total settlement reaches US$48.1 million.
On Oct. 22, 2013, US Securities and Exchange Commission charged Diebold for corruption US Court for District of Columbia. The commission accused Diebold made approximately US$3 million in illicit payments in China, Russia and Indonesia. It also filed three claims related to regulations of anti-bribery, book and records and internal controls.
Based on the indictment letter, Diebold through its Indonesian unit PT Diebold Indonesia spent over US$147,000 on “leisure trips and entertainment” for official of three state-owned banks in Indonesia. The spending was made in 2005 -2010 period.
“During this time period, Diebold generated approximately $16 million in revenues from sales to government owned banks in Indonesia whose officials were provided leisure trips and entertainment by the company,” said the commission’s attorney.
In May 2013, Diebold Inc. signed an agreement with Bank Mandiri. It requested Diebold to add 1,421 ATM to the bank. With the new additions, Bank Mandiri will increase its total ATM to slightly over 12,400. (indrab@yosefardi.biz)