Probe opened in Russia over state purchases of Mercedes-Benz cars

Article by Christian A., on November 15, 2010

To determine if fraud was committed, Russian investigators have opened a criminal probe into the state agencies’ purchase of Mercedes- Benz cars. According to the Investigative Committee of the Prosecutor General's Office, its preliminary investigation found that there were grounds to suspect fraud. It also found that in awarding contracts, there was a breach of trust.

A committee official clarified that the fraud allegation stems from these government officials who are involved in the contracts, being unauthorized to arrange such transactions.

Last March, Daimler AG, the owner of the Mercedes brand, had agreed to pay $185 million to resolve US criminal charges resulting from giving bribes to Russian officials and at least 21 other countries to gain contracts.

Ute Wueest von Vellberg, a spokeswoman for Daimler, said last Friday that the company will “cooperate fully” with the authorities. She also said that the company has reinforced its internal controls and has “learned a lot from these incidents in the past.”

As part of the original settlement, two Daimler subsidiaries (DaimlerChrysler Automotive Russia and Daimler Export and Trade Finance GmbH) had pleaded guilty on April 1 in US District Court in Washington to violations of the Foreign Corrupt Practices Act.

The settlement deal had noted that Daimler officials made hundreds of improper payments to sell hundreds of millions of dollars worth of vehicles. [via autonews - sub. required]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries