NHAI bribe case: US firm that paid Rs 6.7 cr was blacklisted in 2015
CDM Smith was blacklisted
by NHAI in 2015
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NEWS : CDM, the Boston-based consultancy firm that allegedly
paid kickbacks to the National
Highways Authority of India (NHAI) officials between 2011 and 2015 to
bag contracts was blacklisted by the authority in 2015 itself.
According to an official, CDM Smith
was blacklisted by NHAI in 2015.
The company admitted to the justice
department of the United States that its officials paid bribe of $1.18 million
(approximately Rs 6.7 crore) to NHAI officials between 2011 and 2015 to obtain
works for highway construction supervision and design contracts and a water
project contract in Goa.
The reports mentioned that the
company's division for India operations and CDM India paid bribes to receive
contracts from NHAI. The bribes were normally 2-4% of the contract price and paid
through fraudulent subcontractors, who provided no actual services and
understood that payments were meant to solely benefit the officials.
Bribery cases in the past have been
a drag on the sector that is awaiting revival of private sector interest.
Recently, an enquiry into the
allotment of land for highway projects in Uttrakhand turned into a scam as it
was alleged that the land use pattern was changed from “agricultural to
non-agricultural, in the back date”, to benefit certain owners.
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