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Louis Berger Bribery Scam: Former Goa PWD Minister Churchill Alemao Arrested

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Former Goa minister Churchill Alemao was arrested late last night for his alleged involvement in the Louis Berger International Inc (LBI) bribery scam. Alemao was in charge of the ministry overseeing the state public works department at the time the New Jersey-based company had been awarded the consultancy contract for a water and sewerage project in 2010.

Alemao had allegedly accepted a bribe from LBI to give them the project. He had been PWD minister from 2007 to 2012.

Goa Superintendent of Police (Crime) Karthik Kashyap confirmed the arrest, but declined to give details. PTI reported that he was detained last night from Agassaim village in south Goa at 10.30 pm and later put under arrest around midnight by the Goa Crime Branch police.

READ: New Jersey-Based Construction Consultancy Allegedly Bribed Goa Minister For Landing Plum Contract

Meanwhile Alemao told reporters today that he was innocent and arrested as part of a "political game".

"I am happy. They have arrested me. This is a political game. I have not done anything wrong," Alemao told PTI while being taken for medical examination early today morning.

"Why should I go for anticipatory bail. I am very innocent. I have not done anything wrong," said Alemao when asked why he didn't move anticipatory bail plea.

A team of crime branch officials had gone to arrest Alemao at his residence at Varca in south Goa. "But Alemao was at Agassaim village for a private function from where he was picked up. After initial questioning at crime branch office, he was placed under arrest," a senior official said on the condition of anonymity.

READ: Goa Police File FIR Against Unidentified Former Minister

He has been arrested under various sections of prevention of corruption act and 120 (B) of the Indian Penal Code, a senior police official said.

Along with former Goa chief minister Digambar Kamat, Alemao has been questioned by Crime branch in connection with the Louis Berger bribery case in past.

Alemao was state PWD minister when officials of the US-based company Louis Berger paid bribe to win consultancy for water augmentation and sewerage pipeline project under Japan International Cooperation Agency (JICA).

READ: Goa Chief Minister Wants CBI Probe Into Bribery Allegations In Water Project

"This is politically motivated case. When it comes to politicians all the books of law are kept on the shelf," said Mike Mehta, lawyer for Alemao who had come to meet him at crime branch office during wee hours.

"He could have gone for anticipatory bail but he refused to go for it. He wanted to face the investigators," said Mehta.

Alemao was taken for a medical check up at Goa medical college and hospital during wee hours and was later sent to police lock up.

"Alemao was reluctant to go for medical examination due to which it was delayed by almost three hours," said a crime branch official.

He would be produced before the local court later today.

$1 Million Scam

The New-Jersey based construction management company was charged last month for bribing officials to win two major water developmental projects in Goa and in Guwahati. While the name of the Indian officials are yet to be disclosed by the US Department of Justice, the bribe amount is reported to be just under $1 million (about Rs 6 crore in the current exchange rate).

Executives of the American firm — Louis Berger International Inc — allegedly bribed Indian officials to secure the Goa project, paying around $976,630. Two of its former executives - Richard Hirsch (61) of Philippines, and James McClung (59) of the UAE - pleaded guilty to the bribery charges. The sentencing hearings for Hirsch and McClung are scheduled for November 5 this year. McClung previously served as senior vice president responsible for the firm's operations in India and in Vietnam.

The company has agreed to pay $17.1 million criminal fine to resolve charges that it bribed officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts.

Reports suggested that these bribes were discovered during an internal investigation done by the company, which then reported it to the authorities.

The company took responsibility of the actions of its former managers in an official statement.

“The DOJ has acknowledged the extensive global reforms undertaken at Louis Berger since 2010,” said Nicholas J. Masucci, Louis Berger chairman. “2010 was a pivotal year in our company’s history. It marked a clear departure from the past as we assumed new management, new processes and comprehensive system reforms that are the core of our global operations today. Today’s settlement is the critical final milestone in our reform, as it was important for us to take responsibility for the historic actions of former managers and close the chapter on the company’s pre-2010 era.”

Goa Project

The Indian and Japanese government joined hands for a five-year project to improve Goa's water supply and sewerage by expanding, rehabilitating, and building water and sewerage facilities.

Louis Berger was part of a consortium for the project that included two Japanese firms and an Indian partner.

The team developed a project management information system and plan, evaluated bids, reviewed design and construction plans, and ensured quality work was done on time and within budget, the company says on its website.

Louis Berger has offices in India since 1998, currently in Gurgaon, Mumbai, Chennai and Hyderabad.

(with PTI inputs)



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