Chickens coming home to roost
International News Article | Reuters.com
: "COPENHAGEN (Reuters) - A Danish maker of industrial pumps, Grundfos, on Friday admitted paying kickbacks to authorities in Saddam Hussein's Iraq under the U.N. oil-for-food program.
'We deeply regret that two employees have taken part in bribery in connection with Grundfos's sales of pumps under the oil-for-food program,' Grundfos Chief Executive Jens Joergen Madsen said in a statement.
The company said an internal investigation in May 2004 had revealed that the employees had paid bribes to Iraqi authorities in 2001-2002 to win two orders. It fired them and notified the Danish Foreign Ministry and the United Nations about the matter.
The company, which sold products worth up to 100 million Danish crowns under the oil-for-food plan during 1996-2003, declined to comment on the size of the bribes.
Earlier this month Benon Sevan, former head of the $67 billion oil-for-food humanitarian plan for Iraq, was accused of receiving nearly $150,000 in kickbacks, and U.N. Secretary-General Kofi Annan last week ordered a broad independent review of the world body's procurement practices."