Lucent Technologies Inc. has fired four executives in its Chinese operations over what it saw as possible violations of U.S. law against overseas bribery, according to a company filing with the Securities and Exchange Commission.
The positions include the company’s China operations president, chief operating officer, a marketing executive and a finance manager. The company describes their activities as “internal control deficiencies.” In the interim, Robert Warstler, the company’s president of global sales, will run the operations.
The move may reflect the company’s reaction to an investigation launched by two U.S federal agencies last August over bribery allegations against the company in Saudi Arabia. Lucent undertook an internal audit of 23 other foreign countries, said the company in its SEC filing.
The allegations involved the bribing of a Saudi official with money, gifts and free use of private jets with intent to secure contracts from the Saudi Ministry of Post Telephone & Telegraph.
A U.S. firm, the National Group for Communications and Computers, accused Lucent and Swiss firm ACEC of paying bribes of more than $15 million to Ali Al-Johani of the MPTT to make contract decisions partial to Lucent.
Lucent had described the allegations as without merit.
Al-Johani and his family enjoyed paid medical expenses and hotel stays at luxury hotels in New York and Seattle, according to the allegations.
