Alcoa probed over bribery claims

Aluminum producer Alcoa Inc. is under criminal investigation by the U.S. Justice Department over allegations the company bribed officials in Bahrain in an effort to obtain business.

The U.S. submitted papers Thursday in federal court in Pittsburgh requesting permission to participate in a lawsuit filed there by the government of Bahrain containing similar allegations against New York-based Alcoa.

Aluminum Bahrain, or Alba, sued Alcoa on Feb. 27, claiming the company bribed unidentified Bahraini government officials and overcharged over a period of 15 years for alumina, an ingredient used to make aluminum. Alcoa is the world’s largest producer of alumina.

“The allegations in Alba’s complaint implicate facts and conduct that fall within the scope of the criminal investigation,” attorneys for the Justice Department said in court papers. Alba and Alcoa said they didn’t oppose the government’s request.

“We are going to cooperate fully with them, and we see this as an opportunity to bring a speedy conclusion to the entire matter,” Alcoa spokesman Kevin Lowery said.

The probe centers on alleged violations of the Foreign Corrupt Practices Act, which prohibits payoffs to overseas officials.

The Justice Department has expanded enforcement of the law in the last few years, targeting companies and executives in industries including defense and oil and gas services. The department has about 80 pending foreign bribery investigations, according to the FBI.