Bloomberg reported that according to new claims filed in a racketeering lawsuit, Alcoa Inc is accused of using a middleman to bribe officials at Bahrain’s state owned aluminum producer to reap more than USD 400 million in illegal profit.

According to the filing, Alcoa, the largest US aluminum producer, made tens of millions of dollars in illegal payments through an intermediary to an official at Aluminium Bahrain BSC, known as Alba and the government of Bahrain, according to court papers filed in federal court in Pittsburgh.

As per report, the company also paid more than USD 5 million in bribes to former Alba CEO Mr Bruce Hall.

Alba sued Alcoa in February 2008 claiming the New York based company caused it to pay inflated prices for alumina, the principal raw material in aluminum. The case was closed after the US Justice Department said it was investigating whether Alcoa made corrupt payments in Bahrain. It was reopened in November after a judge ruled that Alba could file an amended complaint and a statement laying out its racketeering case.

Mr Mike Belwood a spokesman for Alcoa said the claims in Alba’s case are not supported by the facts.

Mr Belwood in a phone interview said that “Nothing in the statement filed yesterday changes our view. Alba’s statement is yet another recitation of the alleged misdeed of Victor Dahdaleh and Bahraini officials in an attempt to try and construct a claim and survive Alcoa’s upcoming motion to dismiss.”

According to court papers, Alcoa asked to reopen the case in November and sought permission to file a motion seeking its dismissal because racketeering law does not apply to the extraterritorial conduct, alleged by Alba.

(Sourced from Bloomberg)